Baker Hughes Inks New Supply Agreement, This Time For Driftwood LNG Project

Baker Hughes Company BKR penned a deal with Tellurian Inc TELL for securing eight main refrigerant compression packages for Phase 1 of the Driftwood LNG project. 

The contract includes a delivery schedule for the eight LM6000PF+ gas turbines, main refrigerant compressors, and control units.

The deal supports Driftwood's project target to achieve initial liquefied natural gas (LNG) production in 2027.

"This agreement builds on the established collaboration between Baker Hughes and Tellurian as we continue to execute on our scope for the Driftwood Pipeline 200, which includes providing zero-emissions ICL compressor packages for their first deployment in North America. Leveraging our 30 years of experience in LNG and broad portfolio of technologies for the natural gas value chain, we are pleased to support Tellurian also for the Driftwood liquefaction plant with our gas technology solutions," said Lorenzo Simonelli, chairman and CEO of Baker Hughes.

Yesterday, Baker Hughes executed an expanded master equipment supply agreement with Low-cost LNG provider Venture Global LNG for the additional liquefaction train systems and power island systems for Venture Global's future LNG export projects.

Baker Hughes, the energy solutions provider, reported a 2Q FY23 revenue increase of 25.1% year-over-year to $6.32 billion, beating the consensus of $6.26 billion. Adjusted EPS was $0.39, beating the consensus of $0.33.

Price Action: BKR shares closed higher by 0.71% at $37.07 on Tuesday.