US energy company Baker Hughes has signed two agreements to develop natural gas and energy infrastructure in Venezuela. One is a strategic alliance with state-owned PDVSA, Lindsayca and Fulcrum LNG, and the second is a memorandum of understanding with New Stratus Energy.
The partnership with PDVSA is aimed at restoring and expanding gas infrastructure along the entire chain - from field development and production to processing, transportation, domestic supplies and potential exports. The companies will work on specific projects to modernize existing facilities and build new capacity.
“The central goal of these partnerships is to develop an integrated gas chain that will transform Venezuela's significant resources into reliable domestic supplies and future export opportunities,“ said Baker Hughes CEO Lorenzo Simonelli. According to him, the country has the potential to become a significant player in the changing global energy market.
In the short term, the companies will study the necessary repairs and improvements to increase natural gas supplies for the local market and for power generation. In the longer term, the construction of open-access transmission and LNG infrastructure will be evaluated to allow PDVSA and other producers to realize their resources.
Framework agreement without announced value
Baker Hughes clarified that the alliance is a framework for cooperation, not a final contract for a specific site. Each project will require separate agreements, approvals from the participating companies and compliance with US sanctions and export control regulations. If necessary, permits will be required from the Office of Foreign Assets Control of the US Department of the Treasury.
The financial value of the agreements and the deadlines for implementation have not been announced. It is not specified when construction of specific facilities may begin. Baker Hughes said the goal is to facilitate the first export of liquefied natural gas produced in Venezuela.
A separate memorandum with New Stratus Energy provides support for future oil and gas projects in the country. It includes the use of technologies for exploration, drilling, production, processing, electricity generation and emission reduction.
On October 2, Venezuelan President Delcy Rodriguez received a Baker Hughes delegation led by Simonelli. The meeting discussed operational partnerships, gas projects and infrastructure for continental gas fields, Venezuelan authorities said.
Baker Hughes says it has been present in the Venezuelan energy sector for more than 60 years. Its installed base in the country includes more than 1,200 oil recovery systems and about 240 turbomachinery at 23 sites.