Baker Hughes Company BKR, a leading energy technology company, has been issued a Full Notice to Proceed (FNTP) by Technip Energies for the delivery of liquefaction equipment for Commonwealth LNG’s export plant in Louisiana, which is currently under development. Technip Energies has issued the FNTP on account of Commonwealth LNG, indicating that the export terminal is moving toward a final investment decision (FID). The export facility has a total capacity of 9.5 million tons per annum (MTPA).
Contract Scope Covers Critical LNG Liquefaction Equipment
The scope of the contract includes six refrigerant turbo compressors featuring LM9000 aeroderivative gas turbines along with centrifugal compressors. This equipment is critical to the LNG liquefaction process and draws on BKR’s advanced, cutting-edge LNG technologies. The scope also includes commissioning services, capital spares and extended warranty services. Furthermore, the scope includes a full string test, which involves testing the turbine and compressor system before installation. This ensures the reliability of the LNG equipment supplied.
Partnership With Technip Energies & Commonwealth LNG
Baker Hughes’ strong partnership with Technip Energies and Commonwealth LNG is expected to support the efficient development of the export facility. Additionally, BKR’s efforts toward the construction of the LNG export facility are anticipated to support the growth of export capacity in the United States amid rising global demand for the fuel.
Technip Energies has stated that the contract award regarding the supply of critical liquefaction equipment for Commonwealth LNG’s export facility strengthens its relationship with Baker Hughes. Furthermore, this marks a major step toward reaching an FID for the project, which is expected in the first quarter of 2026. The company highlighted that the collaboration among all partners is expected to help deliver a leading modular LNG facility that will meet the rising global demand for low-carbon and reliable energy supply.
LM9000 Turbines: High-Efficiency, Low-Emission Design
The LM9000 gas turbines are among the most efficient turbines in the 70+ MW energy class. These gas turbines deliver more than 44% efficiency under ISO conditions, implying distinguished fuel efficiency levels. It also comes with compact packaging, which enables faster installation and commissioning. This allows the gas turbines to reduce operational timelines. Per Baker Hughes, the LM9000 aeroderivative gas turbines, combined with centrifugal compressors, are expected to be extremely efficient, providing high reliability and relatively lower carbon emissions.
BKR Reinforces Position Across the LNG Equipment Value Chain
Baker Hughes has mentioned that the supply of LM9000 gas turbines to Commonwealth LNG demonstrates its strong position across the LNG equipment value chain. The company is committed to the development of energy infrastructure, which is essential to meet the rising demand for energy, thereby contributing to global energy security.
The Commonwealth LNG project is currently under development in Cameron Parish, LA. The project is being developed by Catarus, a company controlled by Kimmeridge. Kimmeridge is an alternative asset manager with a strong focus on the energy sector.
BKR’s Zacks Rank and Key Picks
BKR currently carries a Zacks Rank #3 (Hold).
Some top-ranked stocks from the energy sector are Oceaneering International OII, Subsea7 S.A. SUBCY and FuelCell Energy FCEL. While Oceaneering currently sports a Zacks Rank #1 (Strong Buy), Subsea7 and FuelCell carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.
Subsea7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry, providing engineering, construction and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
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Oceaneering International, Inc. (OII): Free Stock Analysis Report FuelCell Energy, Inc. (FCEL): Free Stock Analysis Report Subsea 7 SA (SUBCY): Free Stock Analysis Report Baker Hughes Company (BKR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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