CERAWEEK-LNG growth to be met by other countries if US walks away -Baker Hughes CEO

Curtis Williams
2 min read
0
In this article:

By Curtis Williams

HOUSTON, March 21 (Reuters) - If the U.S. pulls back from permitting new liquefied natural gas (LNG) export plants, demand for the fuel will still be met from projects in Qatar, Argentina and Africa, the CEO of Baker Hughes, the world's largest provider of equipment for the LNG sector, said on Thursday.

The Biden administration in January paused new export permits for LNG projects to study the impact of further expansion, a move that has drawn criticism from LNG companies and their advocates.

"We believe by 2030 there needs to be an installed base capacity of LNG of 800 million tons per annum and either through U.S. projects or international projects," Baker Hughes CEO Lorenzo Simonelli said in an interview on the sidelines of CERAWeek conference in Houston.

Qatar, one of the top LNG exporters, has announced plans to significantly expand its production, underpinned by the additional resources in its North Field.

"If you look at projects in Africa, you have the Rovuma project. In Argentina, we know they have plenty of gas. There are plenty of opportunities internationally as well as floating LNG," Simonelli told Reuters.

Africa is at the

forefront

of a global wave of new floating LNG facilities, including Mozambique which shipped its first LNG cargo from its offshore Rovuma basin to Europe in 2022.

Argentina's Vaca Muerta, a formation that rivals the U.S. Permian basin, holds the

world's second-largest shale gas

reserves and could become a key global supplier of gas if the country speeds up projects planned for exporting LNG.

So far, the U.S. permitting pause has not led to the cancellation of any equipment orders from U.S. companies and has had no impact on Baker Hughes' business, said Simonelli.

The growth in artificial intelligence has had a material impact on power demand and one that is being considered in Baker Hughes forecasts for supplying equipment, said Simonelli.

(Reporting by Curtis Williams in Houston)

Advertisement

Recommended Stories

  • Whirlpool, Struggling to Sell Large Appliances, Bets on $2,000 Espresso Maker

    (Bloomberg) -- Whirlpool Corp. is struggling to sell large appliances so it’s hoping you’ll pay big appliance prices for a high-end espresso machine.Most Read from BloombergJavier Milei Fuels Wild Rally That Makes Peso No. 1 in WorldPlunging Home Prices, Fleeing Companies: Austin’s Glow Is FadingFed’s Preferred Core Inflation Gauge Rose at Brisk Pace in MarchHuawei’s New Phone Runs Latest Version of Made-in-China ChipBillionaire Stephen Ross Believes in South Florida—and Is Spending Big to Trans

  • General Motors to shut manufacturing operations in Colombia, Ecuador -statement

    BOGOTA (Reuters) -U.S. car maker General Motors will close its manufacturing operations in Colombia and Ecuador, the company said in a statement on Friday, as part of its shift towards producing next-generation vehicles. Manufacturing will cease at company's Colmotores plant in Colombia from Friday, it said, while operations will halt at its factory in Ecuador at the end of August. In Colombia, the company is seeking permission from the labor ministry to lay off 850 workers, a spokesperson said.

  • Smokeless Products Are the Future of Big Tobacco. This Company Is Losing the Race.

    Philip Morris and Altria earnings showed which one is gaining market share of smokeless alternatives.

  • Argentina Lithium positive Lithium Values in 12th Exploration well at Rincon West

    Argentina Lithium Vice President of Exploration Miles Rideout joined Steve Darling from Proactive to share positive results from the 12th exploration hole at the Rincon West Project in Salta Provin...

  • Apple accused by Congo over conflict minerals in iPhones

    The Democratic Republic of Congo has accused Apple of using illegally exported minerals from the war-torn east of the country, challenging the...

  • Toyota trials EV pickups in Thailand

    Country is a key south east Asian battleground for electric vehicles

  • Hermès eludes luxury slowdown, could overtake Louis Vuitton as top brand: Analyst

    A Citi analyst contends Hermès is set to surpass its biggest competitor in the next few years and become the largest luxury fashion brand.

  • As demand for US LNG booms, one plant struggles to stay online

    HOUSTON (Reuters) -The second-largest U.S. liquefied natural gas (LNG) export facility has been running below 80% of its capacity due to technical problems, data from financial firm LSEG showed, denting U.S. exports. Since Jan. 15, Freeport LNG's Quintana, Texas, liquefaction plant has been operating without at least one of its three gas-processing trains. On Thursday, it took in 61 million cubic feet (mcf) of gas, compared to its capacity for 2.2 billion cubic feet per day (bcfd), LSEG data showed.

  • Report: Made in America Here to Stay—But the Reality is Different Than the Dream

    U.S. firms looking to bring sourcing closer to home and escape China's influence may only be able to achieve one of those objectives.

  • Porsche AG posts Q1 profit drop on ramp-up costs

    FRANKFURT (Reuters) -Porsche on Friday reported a 30% drop in first-quarter operating profit, citing higher investments in what the German luxury carmaker has called its biggest year of product launches in history. Operating profit in the first three months of 2024 came in at 1.28 billion euros ($1.37 billion), in line with an LSEG estimate, while sales for the period stood at 9.01 billion, beating the 8.77 billion forecast. "In a challenging environment, we are staying on course and resolutely pursuing our strategy," Porsche AG CEO Oliver Blume, who also heads Porsche's parent Volkswagen, said in a statement.