Baker Hughes has signed two agreements aimed at expanding Venezuela’s natural gas and energy infrastructure, including a partnership that could eventually pave the way for the country’s first LNG exports.
The oilfield services giant signed a strategic alliance with Venezuela’s state-owned PDVSA, Lindsayca and Fulcrum LNG focused on restoring and expanding the country’s natural gas infrastructure.
Initially, the partners will identify infrastructure upgrades needed to meet PDVSA’s own gas requirements and increase supplies to Venezuela’s domestic market, including natural gas used for electricity generation.
Over the longer term, however, the companies plan to evaluate and potentially finance new open-access midstream and LNG infrastructure. Such projects could allow PDVSA and other Venezuelan producers to commercialize stranded gas resources and eventually export LNG.
Baker Hughes CEO Lorenzo Simonelli said a central goal was creating an integrated gas value chain capable of turning Venezuela’s substantial resources into reliable domestic supplies and future export opportunities.
Baker Hughes will provide technology covering field development, gas infrastructure and LNG, while Lindsayca will contribute engineering, construction and operational capabilities. Fulcrum will focus on midstream and LNG development, financing and market access.
The agreement remains a cooperation framework rather than a final investment commitment. Individual projects would require separate agreements and approvals and must comply with U.S. sanctions and export controls, including applicable authorizations from the Treasury Department’s Office of Foreign Assets Control.
Separately, Baker Hughes signed an MoU with New Stratus Energy covering potential future Venezuelan oil and gas developments.
Baker Hughes already has a substantial footprint in Venezuela after operating in the country for more than 60 years, including more than 1,200 oil production systems and around 240 turbomachinery units across 23 sites.
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Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
