Baker Hughes to Supply Compressor Units for Argentina Gas Pipeline

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

Baker Hughes is expanding its South American footprint by supplying three compression units for a natural gas pipeline running from Argentina's Vaca Muerta shale formation to a floating LNG plant.

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New Contract Win

Baker Hughes has cause to celebrate this week as the company has confirmed an order for three compressor units to help transport natural gas from Argentina's Vaca Muerta shale formation to a floating liquefied natural gas (FLNG) plant on the Atlantic coast.

The order comes from Southern Energy, a consortium of various companies aiming to move gas from the shale formation to a FLNG plant on San Matias Bay near the San Antonio Este port. Industrial Info is tracking the pipeline, compressor station and FLNG plant, all of which are expected to come together in 2027.

The Pipeline

Construction of the pipeline lateral connecting the San Martin Pipeline to the compressor station kicked off recently. The 15-kilometer, 30-inch-diameter lateral will provide a key link to the FLNG plant, and engineering, procurement and construction company Socotherm Americas SA is expected to wrap up construction in the summer of 2027. Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipelines Project Database can learn more by viewing the project report.

The Compressor Station

The compressor station that Baker Hughes is equipping will be built in the Rio Negro province, moving 15 million cubic meters of gas per day through the lateral to the FLNG plant. Baker Hughes will supply three of its NovaLT 16 gas turbines with compressors and will be responsible for commissioning services, remote monitoring and diagnostic capabilities. Construction is expected to kick off in the coming months and wrap up around the same time as the pipeline lateral. Subscribers can learn more by viewing the project report.

The FLNG Plant

The final destination for the gas will be the FLNG plant in the Gulf of San Matias, on which Southern Energy consortium member Golar LNG is taking the leading role. At the plant, the gas will be liquefied into 2.45 million tonnes per annum (MTPA) of LNG. The plant is expected to begin operating shortly after completion of the pipeline and compressor station. Subscribers to Industrial Info's GMI Production Project Database can learn more by viewing the project report. A subsea pipeline will move the gas from the coast to the plant.

More to Come, Potentially

Holding the world's second-largest shale gas reserves (the largest are in China), the Vaca Muerta formation is an abundant resource, and the companies behind Southern Energy may extend the gas-to-LNG process even more. Industrial Info is tracking the possibility of the group raising production by constructing another compressor station and a 3.5-MTPA FLNG plant.

All being well after an initial run, Baker Hughes could extend its contract to equip the second compressor station, although Industrial Info doesn't expect construction to occur--if it indeed does happen--until 2028.

Prior Win

The Baker Hughes contract comes within weeks of the company's scoring another contract to supply three NovaLT 16 turbines and compressor trains for ST LNG's planned FLNG plant off the coast of Matagorda, Texas, more or less halfway between Houston and Corpus Christi.

Key Takeaways

• Baker Hughes has won the contract to supply compressor units for a pipeline in Argentina.
• The pipeline will carry natural gas from the Vaca Muerta shale to an FLNG unit off the Atlantic coast.
• The pipeline lateral, compressor station and FLNG plant are expected to be completed next year.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 trillion (USD).