We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Baker Hughes (BHGE) Wins Contract for Calcasieu Pass Project
Read MoreHide Full Article
Baker Hughes, a GE company recently announced that it has secured a contract for the Calcasieu Pass project of Venture Global LNG. Baker Hughes is expected to provide modular liquefaction trains for the project. Moreover, its power generation and electrical distribution equipment will likely bring innovative technology solutions to the Calcasieu Pass project, located in Cameron Parish, LA.
Notably, this award is part of a master equipment supply agreement — which involves building 60 million tons per annum (MTPA) of production capacity — signed between Baker Hughes and Venture Global LNG.
Owing to the latest award for the Calcasieu Pass project and a series of new LNG contracts, Baker Hughes’s profit levels are expected to significantly improve. With growing demand for clean energy and the need to curb greenhouse gas emissions, countries around the world are investing in LNG terminals. This has given Baker Hughes the opportunity to expand its reach beyond oilfields, in order to capitalize on contracts to manufacture equipment that are being used in LNG facilities.
The LNG liquefaction train system that Baker Hughes will supply at the Calcasieu Pass project is expected to incorporate 18 modularized compression trains across nine blocks. The system is estimated to have a capacity of 10 MTPA. The modularized system to be provided by the company has low construction and operating costs, and requires lower installation time. This trait is expected to increase efficiency of the LNG project.
The company intends to manufacture, assemble and test the modules in its plants located in Italy. Once the modules are built, these will be transported to the project site. Baker Hughes expects the deliveries of equipment to commence in second-half 2020, with full commercial operations expected to start within 2022. Notably, the Federal Regulatory Energy Commission greenlighted the project earlier this year.
The project has already secured 20-year supply deals with several clients, including the likes of Royal Dutch Shell plc , BP plc (BP - Free Report) and others.
Price Performance
Houston, TX-based Baker Hughes has lost 1.8% year to date against the 1.2% rise of the industry it belongs to.
Zacks Rank and Stock to Consider
Currently, Baker Hughes carries a Zacks Rank #3 (Hold). A better-ranked stock in the energy sector is given below:
NuStar Energy L.P. (NS - Free Report) is one of the largest independent liquids terminal and pipeline operators in the United States. Its third-quarter earnings per unit are expected to surge more than 100% year over year. It has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Baker Hughes (BHGE) Wins Contract for Calcasieu Pass Project
Baker Hughes, a GE company recently announced that it has secured a contract for the Calcasieu Pass project of Venture Global LNG. Baker Hughes is expected to provide modular liquefaction trains for the project. Moreover, its power generation and electrical distribution equipment will likely bring innovative technology solutions to the Calcasieu Pass project, located in Cameron Parish, LA.
Notably, this award is part of a master equipment supply agreement — which involves building 60 million tons per annum (MTPA) of production capacity — signed between Baker Hughes and Venture Global LNG.
Owing to the latest award for the Calcasieu Pass project and a series of new LNG contracts, Baker Hughes’s profit levels are expected to significantly improve. With growing demand for clean energy and the need to curb greenhouse gas emissions, countries around the world are investing in LNG terminals. This has given Baker Hughes the opportunity to expand its reach beyond oilfields, in order to capitalize on contracts to manufacture equipment that are being used in LNG facilities.
The LNG liquefaction train system that Baker Hughes will supply at the Calcasieu Pass project is expected to incorporate 18 modularized compression trains across nine blocks. The system is estimated to have a capacity of 10 MTPA. The modularized system to be provided by the company has low construction and operating costs, and requires lower installation time. This trait is expected to increase efficiency of the LNG project.
The company intends to manufacture, assemble and test the modules in its plants located in Italy. Once the modules are built, these will be transported to the project site. Baker Hughes expects the deliveries of equipment to commence in second-half 2020, with full commercial operations expected to start within 2022. Notably, the Federal Regulatory Energy Commission greenlighted the project earlier this year.
The project has already secured 20-year supply deals with several clients, including the likes of Royal Dutch Shell plc , BP plc (BP - Free Report) and others.
Price Performance
Houston, TX-based Baker Hughes has lost 1.8% year to date against the 1.2% rise of the industry it belongs to.
Zacks Rank and Stock to Consider
Currently, Baker Hughes carries a Zacks Rank #3 (Hold). A better-ranked stock in the energy sector is given below:
NuStar Energy L.P. (NS - Free Report) is one of the largest independent liquids terminal and pipeline operators in the United States. Its third-quarter earnings per unit are expected to surge more than 100% year over year. It has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>