Baker Hughes CEO sees huge LNG capacity investment in next two years

US energy services firm Baker Hughes expects LNG players to take final investment decisions for up to 150 million tonnes per year of new liquefaction capacity in the next two years, according to chief executive Lorenzo Simonelli.

Baker Hughes has provided its tech to about 50 LNG plants around the globe. The firm also recently won a contract from compatriot Venture Global LNG to supply a liquefaction train system for the first phase of the Plaquemines LNG export project in Louisiana.

The company sees a “significant increase” in LNG infrastructure investment in the next period as Europe looks to reduce its reliance on Russian gas and as countries around the globe seek cleaner fuels as well.

Given the current LNG price environment and the quickly changing dynamics, Baker Hughes expects that global LNG capacity would likely exceed 800 mtpa by the end of this decade to meet growing demand forecasts, Simonelli told analysts during the company’s first-quarter conference call on Wednesday.

This compares to the current global installed base of 460 mtpa and projects under construction totaling almost 150 mtpa.

“I think it’s clear the unfolding situation in Europe has definitely accelerated the pace of discussions on the next wave of LNG projects aiming to take FID,” Simonelli said.

He said Baker Hughes now expects 100 to 150 mtpa to take FID over the next 2 years, with the potential of more FIDs in 2024 and 2025.

“As you know, a lot of these projects are in the US,” he said. “But also as we look at other places such as Middle East, Mexico and also Asia, we’re seeing increasing interest from customers,” Simonelli added.

- Advertisements -

Most Popular

Golden Pass LNG contractor Zachry files for bankruptcy

US construction company Zachry said on Tuesday it has filed for bankruptcy, initiating a structured exit from the Golden...

Kinder Morgan secures more time for Gulf LNG export project

US energy company Kinder Morgan and its partners have secured more time from the US FERC to add liquefaction...

Hoegh LNG: commissioning of Brazilian FSRU completed

Commissioning of the FSRU Hoegh Giant which serves Cosan's LNG import terminal in Brazil's port of Santos has been...

More News Like This

US LNG exports drop to 23 shipments

US liquefied natural gas (LNG) exports dropped in the week ending May 22 compared to the week before, according...

French and Dutch terminals remain top destinations for US LNG cargoes

French and Dutch LNG import terminals remained the top destinations for US liquefied natural gas supplies in March, as...

US LNG exports climb to 28 shipments

US liquefied natural gas exports rose in the week ending May 15 compared to the week before, with the...

Freeport LNG says all three trains in service

Freeport LNG, the operator of the 15 mtpa liquefaction plant in Texas, has resumed operations at all of its...