Baker Hughes to supply liquefaction tech for Canada’s Cedar LNG project

US energy services firm Baker Hughes has secured an order from compatriot engineer Black & Veatch to supply the planned Cedar LNG project in Canada with electric driven liquefaction technologies.

Baker Hughes said in a statement the award was booked in the first quarter of 2024, but it did not reveal the price tag of the contract.

Under the contract, Baker Hughes will supply a range of turbomachinery equipment, including four electric-driven main refrigeration compressors, two electric-driven boil-off gas compressors, and six centrifugal pumps.

The award continues the positive demand momentum for Baker Hughes’ gas technology equipment portfolio following several major LNG orders throughout the past year, the firm said.

Baker Hughes booked record $5.6 billion of LNG equipment orders in 2023.

The company said the outlook for LNG FIDs over the next few years “remains strong”.

On the other hand, Canada’s Pembina Pipeline and the Haisla Nation recently issued a notice to proceed to Samsung Heavy Industries and Black & Veatch for Cedar LNG’s floating LNG production unit following the finalization of long-term commercial offtake agreements.

Cedar LNG signed a 20-year take-or-pay fixed toll contract with compatriot ARC Resources for 1.5 mtpa.

Pembina and the Haisla Nation each own 50 percent in the Cedar LNG project.

The total project cost, including $0.6 billion of interest during construction and transaction costs, is expected to be about $4 billion, according to Pembina.

The partners expect to take a final investment decision on the project by the middle of 2024.

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