Baker Hughes wins contract for equipment supply for Rio Grande LNG Train 5
Baker Hughes Contract: Baker Hughes has secured a contract from Bechtel Energy to supply liquefaction equipment for Train 5 at NextDecade’s Rio Grande LNG project in Texas, following a previous award for Train 4.
Equipment Details: The order includes two Frame 7 gas turbines and six centrifugal compressors, aimed at increasing the facility's production capacity by approximately six million tonnes per annum.
Technological Solutions: In addition to the liquefaction equipment, Baker Hughes is providing a digital solution for equipment monitoring and diagnostics through the Cordant Asset Health system.
Collaboration and Impact: The ongoing collaboration between Baker Hughes, Bechtel, and NextDecade emphasizes the importance of reliable technology in expanding LNG infrastructure to meet growing global energy demands.
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- Permian Basin Rig Count Decline: The latest data from Baker Hughes indicates a decrease of three rigs in the Permian Basin this week, bringing the total to 238 active rigs, down from 304 a year ago, suggesting a slowdown in drilling activity that could impact future oil supply.
- National Rig Count Unchanged: The national oil and gas rig count remains unchanged at 551 rigs, compared to 588 rigs a year ago, reflecting overall market weakness and investor caution regarding future oil and gas market conditions.
- Shifts in Rig Distribution: Among the active rigs, the number seeking oil decreased by three to 409, while those exploring for natural gas increased by three to 133, indicating a rising demand for natural gas in the current market environment.
- Slight Drop in Oil Prices: The regional benchmark price for oil ended Friday at $59.37 per barrel, down 66 cents from last week, while the national benchmark West Texas Intermediate crude closed at $62.89 per barrel, also down 66 cents, indicating pressure on oil prices in the market.
- Asset Sale Plan: Baker Hughes is set to initiate the sale of its Waygate Technologies unit in the coming months, potentially attracting interest from private equity firms and fetching around $1.5 billion, which could optimize capital allocation and enhance shareholder value.
- Significant Acquisition Context: Following its $9.6 billion acquisition of industrial equipment maker Chart Industries last year, Baker Hughes is conducting a comprehensive evaluation of its capital allocation to ensure effective integration and business growth post-acquisition.
- New Order Secured: Recently, Baker Hughes received a gas turbine order from Twenty20 Energy to supply 10 Frame 5 gas turbines and associated equipment for U.S. data center infrastructure, further solidifying its market position in critical infrastructure.
- Positive Stock Reaction: Baker Hughes shares rose 4% on Wednesday, reflecting market optimism regarding its potential asset sale and new orders, although retail sentiment remains bearish; nonetheless, the company's stock has increased nearly 30% over the past year.
- Major Order Announcement: Baker Hughes (BKR) has secured a significant order from Twenty20 Energy for 10 Frame 5 gas turbines and associated generator technology, supporting up to 250 MW of power generation capacity, indicating strong demand in the power equipment market.
- Delivery Schedule: Initial deliveries are designated for Twenty20 Energy's data center projects in Georgia and Texas, scheduled for completion in 2027, which will help meet the increasing demand for digital infrastructure.
- Strategic Partnership Outlook: This order signifies progress in the strategic agreement between Baker Hughes and Twenty20 Energy, as both companies commit to supplying multi-gigawatt power generation equipment to address the rapidly growing demand for reliable and sustainable power in the U.S.
- Positive Market Reaction: Baker Hughes (BKR) shares rose 3.8% in Wednesday's trading, reaching a nine-year high of $62.08, reflecting investor optimism regarding the company's future growth potential.
- Energy Exploration Consortium: Saudi Arabia's ACWA Power and TAQA, along with U.S. firms Baker Hughes, Hunt Energy, and Argent LNG, are forming a consortium for energy exploration and production in Syria, targeting 4-5 exploration blocks in the northeastern region to rebuild war-damaged energy infrastructure.
- Urgent Investment Needs: The Syrian government is seeking billions of dollars in foreign investment to repair its severely damaged energy facilities due to 14 years of war, highlighting the urgent need for reconstruction in the energy sector.
- Kurdish Forces Integration: The eastern region of Syria, traditionally rich in oil and previously controlled by Kurdish forces, has agreed to integrate into state governance, creating new opportunities for foreign investment and enhancing the stability of energy development.
- Accelerated International Cooperation: Last week, Chevron signed an initial offshore gas exploration agreement in Syria with a Qatari firm, indicating a rising interest from international energy companies in the Syrian market, potentially paving the way for future investments.
- Energy Sector Recovery: The energy sector has achieved eight consecutive weeks of growth, a trend not seen in nearly two years, indicating a market shift towards tangible resources amid stagnation in Big Tech.
- Contract-Driven Growth: SLB's recent international project awards and higher-margin digital completions have reignited confidence that service providers are entering a multi-year spending upswing, driving overall industry performance.
- Capital Expenditure Shift: Major companies like Exxon and Chevron are shifting their capital programs towards complex, high-return projects that require more engineering, equipment, and services, providing robust support for SLB and Baker Hughes.
- Tech Sector Lagging: While investors are skeptical about the rapid growth of AI revenues in the tech sector, the energy sector's sustained performance suggests a preference for tangible scarcity over digital hype, reflecting a broader investor inclination towards physical assets.

- Stock Sale Announcement: Baker Hughes officer Borraas Maria intends to sell 54,434 shares of its common stock on February 9.
- Market Value: The total market value of the shares being sold is approximately $3.22 million.









