A rendering of an LNG terminal

Baker Hughes in the clear for work at $11 billion LNG project on US Gulf Coast

Business Developments & Projects

French-based engineering company Technip Energies, as the engineering, procurement, and construction (EPC) services provider for a liquefied natural gas (LNG) project under development in Louisiana, has given the all-systems-go signal to the U.S.-headquartered energy technology giant Baker Hughes for the supply of liquefaction equipment destined for the LNG export project being developed by Commonwealth LNG, a firm controlled by the energy-focused alternative investment manager Kimmeridge.

A rendering of an LNG terminal
Rendering of Commonwealth LNG; Source: Commonwealth LNG

Baker Hughes has received a full notice to proceed from Technip Energies on behalf of Commonwealth LNG to supply primary liquefaction equipment for the 9.5 million tonnes per annum (mtpa) export facility currently under development in Cameron, Louisiana.

David Lawler, Caturus’ Chief Executive Officer, commented: “This significant capital investment in the Commonwealth LNG platform is a key milestone, along with the financing process, which is well underway, and illustrates our level of commitment to developing this global-scale LNG project,

“The Commonwealth project is a crucial component of Caturus’ wellhead-to-water strategy, and this is another important step toward building the nation’s leading independent integrated natural gas company.” 

This award entails six refrigerant turbo compressors comprising LM9000 aeroderivative gas turbines paired with centrifugal compressors. The U.S. player’s established collaboration with both companies is anticipated to help ensure the efficient delivery of the export facility, designed to meet the growing global demand for reliable, lower-carbon LNG.

Arnaud Pieton, CEO of Technip Energies, remarked: “Building on our long-standing relationship with Baker Hughes, this award for critical liquefaction equipment marks another significant milestone in advancing the Commonwealth LNG project toward its final investment decision.

“This progress reflects our strong collaboration with our customer Commonwealth LNG and our equipment partners. I look forward to our teams working together to deliver a world-class modular LNG facility, enhancing energy security while addressing growing global demand for gas and LNG.”

Baker Hughes describes the LM9000 as the most efficient gas turbine in its power class (70+ MW range) with more than 44% efficiency in ISO conditions and a mean time between maintenance (MTBM) and a compact package design that enable simplified maintenance, extended service intervals, high availability, and fast installation and commissioning.

The firm’s scope also encapsulates commissioning services, capital spares, extended warranty, and a full string test. Following offtake agreements with global players, including Glencore, JERA, and Petronas, the project received a final order from the Federal Energy Regulatory Commission (FERC), upholding the terminal’s export authorization.

However, a recent court ruling claimed that the Louisiana Department of Energy and Natural Resources (LDENR) violated the Louisiana Constitution by issuing the coastal use permit for the proposed Commonwealth LNG export facility without considering its disproportionate effect on the surrounding communities of color and low-income communities, alongside the climate change and cumulative impacts, with other export facilities in the area.

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Lorenzo Simonelli, Baker Hughes’ Chairman and CEO, highlighted: “Delivering our LM9000 technology to Commonwealth LNG is an additional milestone that demonstrates the strength of Baker Hughes’ proven capabilities across the LNG value chain.

“This award underscores our commitment to enabling energy infrastructure that is critical to support sustainable energy development, delivering affordable and reliable energy to meet growing global demand.”

This green light comes after Baker Hughes secured an additional order from Bechtel for the Rio Grande LNG expansion project related to the $6.7 billion Train 5 expansion of NextDecade’s development in the Port of Brownsville, Texas.

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