The agreements bring together expertise spanning oil and gas production, midstream infrastructure, gas processing, monetization and LNG commercialization
Baker Hughes has struck two strategic agreements aimed at reviving Venezuela’s battered energy infrastructure and unlocking its vast natural gas resources, including a potential path to the country’s first LNG exports.
The energy technology company announced Monday that it had signed an alliance with Venezuela’s state oil company PDVSA, Lindsayca and Fulcrum LNG to develop and expand natural gas infrastructure. It has also signed a separate memorandum of understanding with New Stratus Energy to support future oil and gas projects in the country.
The agreements bring together expertise spanning oil and gas production, midstream infrastructure, gas processing, monetization and LNG commercialization. Baker Hughes said the framework could help connect Venezuela’s upstream resources with domestic energy demand and international markets.
“A central objective of these partnerships is the development of an integrated gas value chain capable of transforming Venezuela's substantial natural gas resources into reliable domestic supply and future export opportunities, including the potential to export the first LNG molecules produced in Venezuela,” said Lorenzo Simonelli, chairman and CEO of Baker Hughes.
“Venezuela holds tremendous potential to become a significant contributor to the evolving global energy landscape, and these agreements are designed to bring world-class resource opportunities, project development, energy infrastructure & technologies, and financing expertise together to realize this.”
The initial focus will be on restoring and upgrading infrastructure needed to meet PDVSA’s domestic gas requirements, while also pursuing opportunities to supply gas to the domestic market and support more reliable power generation.
“This strategic alliance with PDVSA is a historic opportunity to maximize the use and value of Venezuela's natural gas resources, and it reflects the capabilities and expertise of Fulcrum, Lindsayca and Baker Hughes in developing fully integrated gas value chains, from upstream production to end markets,” said Jesus Bronchalo, CEO of Fulcrum LNG, Inc.
"In the near term, we will work closely with PDVSA to identify and execute the infrastructure developments and upgrades needed to meet its internal gas requirements, while pursuing opportunities to supply natural gas to the domestic market to support reliable power generation for Venezuela and its people.
"Over the medium and long term, we will evaluate the development and financing of new open-access midstream and LNG infrastructure that gives PDVSA and other upstream operators solutions to monetize their gas, positioning Venezuela to become a key player in the global gas and LNG industry and helping meet growing world energy demand," Bronchalo said.
The Baker Hughes-led alliance will combine the company’s energy technology portfolio with Lindsayca’s engineering, procurement, construction and operational capabilities and Fulcrum’s expertise in midstream and LNG development, financing and market access.
The companies intend to advance infrastructure for processing, transporting, commercializing and potentially exporting Venezuelan natural gas — a major step for a country with significant gas resources but long-standing infrastructure constraints.
However, the agreement is not itself a commitment to specific projects. Baker Hughes said individual developments will require separate definitive agreements, internal approvals from the participating companies and compliance with U.S. sanctions and export-control rules, including authorizations from the U.S. Treasury Department’s Office of Foreign Assets Control.
The separate MOU with New Stratus Energy expands the scope beyond gas infrastructure. Under the agreement, Baker Hughes will provide technologies and expertise covering subsurface operations, drilling, production, processing, digital systems, emissions reduction, power generation, oil and gas monetization and LNG.
The company has operated in Venezuela’s energy sector for more than six decades. Its existing footprint includes more than 1,200 oil production systems, the country’s largest artificial-lift presence, flexible pipe infrastructure and about 240 turbomachinery units across 23 sites.
The new agreements could therefore give Baker Hughes a central role in efforts to rebuild Venezuela’s energy infrastructure while positioning the country’s gas resources for greater domestic use — and potentially, for the first time, LNG exports.