Baker Hughes secures new contract from Venture Global LNG

US energy services firm Baker Hughes said it had secured a “major” contract from compatriot LNG exporter Venture Global LNG.

Under the contract, Baker Hughes will provide a modularized liquefied natural gas (LNG) system and power island, it said in a statement on Monday.

Baker Hughes said the contract will be booked in the third quarter of 2023.

The contract was awarded under a master equipment supply agreement between Venture Global and Baker Hughes for more than 100 million tons per annum of production capacity, which was recently expanded from 70 Mtpa.

Also, the award builds on previous ones from Venture Global to Baker Hughes to provide comprehensive LNG technology solutions for the Calcasieu Pass and Plaquemines LNG projects in Louisiana.

Baker Hughes did not provide any additional details regarding the contract.

Venture Global’s projects

Venture Global’s 10 mtpa Calcasieu Pass LNG plant in Louisiana produced its first LNG on January 19, 2022, moving from FID to LNG production in 29 months, and the first commissioning cargo left the facility on March 1.

The US firm has not yet declared commercial operations at the facility and some of its customers launched arbitration proceedings due to the delay.

On the other hand, Venture Global’s Plaquemines LNG export plant in Louisiana has recently received its first liquefaction modules.

Baker Hughes ships these modular units to the US from its manufacturing facility in Italy, the same as the firm did for Venture Global’s Calcasieu Pass project.

Venture Global also expects to start construction of its CP2 LNG facility later this year following receipt of FERC authorization.

To date, 9.25 Mtpa of CP2 LNG’s 20 Mtpa nameplate capacity has been sold under 20-year sales and purchase agreements, Venture Global previously said.

The CP2 LNG plant will be located next to Venture Global’s existing Calcasieu Pass liquefaction plant in Louisiana.

It will have 18 liquefaction blocks, each with a capacity of about 1.1 Mtpa of LNG, but also four 200,000-cbm full containment LNG storage tanks.

Besides these three projects, Venture Global is also developing the Delta LNG export facility with a nameplate capacity of 20 Mtpa in Plaquemines Parish, Louisiana.

It previously said the facility may be constructed in two phases, each consisting of 10 Mtpa.

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