Baker Hughes secures key order from Aramco for Master Gas System expansion

Baker Hughes (NASDAQ: BKR), a global leader in energy technology, has announced a significant order from engineering firm Worley, acting on behalf of Saudi oil giant Aramco, to supply advanced gas technology equipment for the third phase of Saudi Arabia’s Master Gas System (MGS) project. This order, recorded in the first quarter of 2024, is pivotal for the ongoing expansion of the Kingdom’s gas distribution network.

Under this new agreement, Baker Hughes will provide 17 state-of-the-art pipeline centrifugal compressors, powered by aeroderivative gas turbines. These installations are part of a strategic initiative to construct a new 4,000-km pipeline that is central to Saudi Arabia’s energy transition goals. The project aims to enhance domestic gas distribution capabilities while significantly reducing the nation’s carbon emissions and dependence on oil.

This latest development follows Baker Hughes’ previous successful delivery of 18 centrifugal compressors for the first and second phases of the Master Gas System projects. Lorenzo Simonelli, chairman and CEO of Baker Hughes, highlighted the company’s 30-year history of partnership with Aramco, emphasizing their joint efforts in reducing emissions through advanced natural gas technologies. “Baker Hughes solutions are advancing the efficient use of natural gas, and we are proud to be delivering a reliable system to transport and distribute gas across Saudi Arabia,” Simonelli stated.

In line with its commitment to local development and sustainability, Baker Hughes is also expanding its manufacturing capabilities in Modon, Saudi Arabia. The site enhancement, which includes doubling the workforce and introducing localized testing and packaging solutions, supports the efficient execution of projects like MGS3. Additionally, in February, Baker Hughes announced the delivery of the first two trains of advanced hydrogen compression solutions for the NEOM green hydrogen project, further establishing its role in supporting Saudi Arabia’s ambitious green energy initiatives.

The strategic collaboration between Baker Hughes and Aramco, facilitated by Worley, represents a significant advancement in energy technology and infrastructure within Saudi Arabia. By leveraging cutting-edge technology and local manufacturing enhancements, Baker Hughes is not only contributing to the Kingdom’s energy transition but also setting a benchmark in the industry for operational efficiency and environmental stewardship.