Baker Hughes (BKR) to Provide Electric LNG Systems for ADNOC
Baker Hughes Company BKR has been selected to provide essential equipment, facilitating the expansion of Abu Dhabi National Oil Company’s (“ADNOC”) liquefied natural gas (LNG) projects.
Baker Hughes received a contract from ADNOC to provide two electric liquefaction systems to be deployed at its Ruwais LNG project in the U.A.E. The LNG trains will incorporate Baker Hughes’ compressor technology, powered by 75 MW electric motors.
The Ruwais LNG plant will mark a milestone as the first LNG project in the Middle East and North Africa region to operate using clean power. This positions it as one of the world’s most environmentally friendly LNG facilities with a minimal carbon footprint.
The Ruwais LNG project is comprised of two natural gas liquefaction trains, each with a capacity of 4.8 million metric tons per annum (Mtpa), resulting in a combined total LNG production capacity of 9.6 Mtpa. Once completed, it will more than double ADNOC’s LNG production target capacity to meet the rising global demand for natural gas.
The award marks a significant achievement for Baker Hughes in the LNG market, underscoring the robustness of its portfolio. The achievement is a testament to the company’s strategic expansion, particularly through the acquisition of BRUSH Power Generation in 2022.
Electrification will play a critical role in the energy transition over the next decade, enabling further reduction of the carbon emissions footprint of natural gas. The award continues the positive demand momentum in 2023 for Baker Hughes’ gas technology equipment portfolio after securing several major LNG orders throughout the year.
The latest award is part of the ongoing partnership between Baker Hughes and ADNOC. In May 2023, the two significant players in the industry signed an agreement to expedite the advancement and adoption of technology solutions in the realms of green and low-carbon hydrogen, as well as graphene. This partnership signifies a commitment to innovation and sustainability in the energy sector.
Zacks Rank & Stocks to Consider
BKR currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Pioneer Natural Resources Company PXD is an explorer and producer of oil, natural gas and natural gas liquid. The upstream energy player’s debt to capitalization has been persistently lower than the industry over the past few years, reflecting considerably lower debt exposure.
Pioneer has witnessed upward earnings estimate revisions for 2023 and 2024 in the past seven days. The consensus estimate for PXD’s 2023 and 2024 earnings per share is pinned at $21.17 and $24.78, respectively.
SM Energy Company SM is an independent oil and gas company that explores, exploits, develops, acquires and produces oil and gas in North America. SM's strong cash generation places it in a better financial position, allowing for investments in dividends, debt reduction and future growth.
SM Energy has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The consensus estimate for SM’s 2023 and 2024 earnings per share is pegged at $5.69 and $6.81, respectively.
Matador Resources Company MTDR is among the leading oil and gas explorers in the shale and unconventional resources in the United States. MTDR’s prime priorities include lowering debt, delivering free cashflows and maintaining or increasing dividends.
Matador Resources has witnessed upward earnings estimate revisions for 2023 and 2024 in the past seven days. The consensus estimate for MTDR’s 2023 and 2024 earnings per share is pegged at $6.40 and $8.64, respectively.
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