U.S.-headquartered energy technology giant Baker Hughes has teamed up with PDVSA, Lindsayca, and Fulcrum LNG in a strategic alliance aimed at overhauling Venezuela’s natural gas infrastructure and establishing the nation's very first liquefied natural gas (LNG) export capabilities.
The company has signed a new agreement with PDVSA, Lindsayca, and Fulcrum LNG that seeks to restore energy infrastructure for gas production, backed by a separate memorandum of understanding (MoU) with New Stratus Energy to support the development of future oil and gas prospects in the country.
These deals establish an enterprise framework that can connect upstream resource development, midstream infrastructure, gas monetization, and LNG commercialization, creating a pathway to unlock Venezuela's significant natural gas potential.
Lorenzo Simonelli, Chairman and CEO of Baker Hughes, commented: “A central objective of these partnerships is the development of an integrated gas value chain capable of transforming Venezuela's substantial natural gas resources into reliable domestic supply and future export opportunities, including the potential to export the first LNG molecules produced in Venezuela.
“Venezuela holds tremendous potential to become a significant contributor to the evolving global energy landscape, and these agreements are designed to bring world-class resource opportunities, project development, energy infrastructure & technologies, and financing expertise together to realize this.”
The alliance will combine Baker Hughes' broad portfolio of industrialized energy solutions for oil and gas field development, gas infrastructure, and LNG solutions; Lindsayca's engineering, procurement, construction, and operational capabilities; and Fulcrum's midstream and LNG project development, financing, and market access.
Jesus Bronchalo, CEO of Fulcrum LNG, noted: “This strategic alliance with PDVSA is a historic opportunity to maximize the use and value of Venezuela's natural gas resources, and it reflects the capabilities and expertise of Fulcrum, Lindsayca and Baker Hughes in developing fully integrated gas value chains, from upstream production to end markets.
"In the near term, we will work closely with PDVSA to identify and execute the infrastructure developments and upgrades needed to meet its internal gas requirements, while pursuing opportunities to supply natural gas to the domestic market to support reliable power generation for Venezuela and its people.”
The collaboration will focus on developing project-specific agreements and advancing critical infrastructure required to process, transport, commercialize, and export natural gas for the first time in the history of Venezuela.
As the alliance is a cooperation framework, any specific project will be subject to separate definitive agreements, each party’s internal approvals, and applicable U.S. sanctions and export control requirements, including authorizations issued by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC).
Bronchalo stated: “Over the medium and long term, we will evaluate the development and financing of new open-access midstream and LNG infrastructure that gives PDVSA and other upstream operators solutions to monetize their gas, positioning Venezuela to become a key player in the global gas and LNG industry and helping meet growing world energy demand.”
On the other hand, the MOU with New Stratus Energy will see Baker Hughes support the development of future oil and gas prospects, leveraging its integrated portfolio of subsurface, drilling, production, processing, digital, emissions abatement, power generation, oil and gas monetization, and LNG technologies to maximize resource recovery opportunities and accelerate future project developments.
The U.S. giant recently won multiple assignments, including a deal with Searah, a 50/50 independent joint venture between Eni and Petronas in Southeast Asia, for the provision of subsea production systems and digital solutions offshore Indonesia.