Abu Dhabi National Oil Co. (Adnoc) has awarded a contract valued over $400 million (AED 1.47 billion) to Baker Hughes Co. for the supply of compression systems for a liquefied natural gas (LNG) project in the Al Ruwais Industrial City.
The equipment will be all-electric, according to press releases by both companies, with Adnoc touting the project as the first liquefaction plant in the Middle East and North Africa to run on clean power. The facility’s LNG trains will use the USA firm’s 75-megawatt BRUSH electric motor technology, Baker Hughes said in its announcement Wednesday.
The project consists of two trains with a capacity of 4.8 million metric tons per annum (mtpa) each, according to Adnoc. “When completed, it will more than double ADNOC’s LNG production target capacity to meet increased global demand for natural gas”, Adnoc said in its own announcement.
“The award of the contract underscores ADNOC’s commitment to accelerate its net zero ambition and decarbonization plans”, the company said. Adnoc has doubled its target carbon dioxide capture capacity to 10 mtpa by 2030.
“As the first clean electricity powered LNG facility in the Middle East, the Ruwais LNG project reinforces ADNOC’s leadership within the LNG industry and underscores our commitment to decarbonization, sustainability and innovation”, Fatema Al Nuaimi, executive vice-president for downstream business management at Adnoc, said in a statement.
Baker Hughes said in its announcement it expects to book the order in the fourth quarter. The equipment will be provided by the former power generation unit of BRUSH Group, a United Kingdom-based equipment maker. Baker Hughes acquired the BRUSH business last year, in a transaction that it said advances its “commitment to lead in providing decarbonization solutions for the natural gas industry and historically hard-to-abate sectors”, as stated in a Baker Hughes news release August 8, 2022 announcing the purchase. The acquisition was completed October 2022, as announced by Baker Hughes October 19, 2022.
Ganesh Ramaswamy, executive vice-president of industrial and energy technology at Baker Hughes, noted in the American company’s announcement, “This award represents an important milestone for Baker Hughes in the LNG market and demonstrates the strength of our portfolio, which we strategically expanded through the BRUSH Power Generation acquisition in 2022”.
The Adnoc award follows a contract Baker Hughes scored from Venture Global LNG Inc. for the supply of a modularized LNG system and a power island. “The contract was awarded under a master equipment supply agreement between Venture Global LNG and Baker Hughes for more than 100 million tons per annum (MTPA) of production capacity, which was expanded from 70 MTPA”, Baker Hughes said in a news release Monday. It did not disclose the value of the “major contract”.
Ganesh added in Wednesday’s announcement of the Adnoc contract, “Over the next decade, electrification will play a critical role in the energy transition, enabling further reduction of the carbon emissions footprint of natural gas”.
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