Baker Hughes Partners for Venezuela Gas Infrastructure Expansion

Baker Hughes has entered into two major agreements aimed at expanding Venezuela's natural gas and energy infrastructure, with a potential long-term goal of enabling the country's first LNG exports. The company has partnered with Venezuela's state-owned PDVSA, Lindsayca, and Fulcrum LNG to restore and expand the nation's gas infrastructure. Initially, the focus will be on upgrading infrastructure to meet PDVSA's gas needs and boost supplies for Venezuela's domestic market, including natural gas for electricity generation.

In the longer term, the partners plan to evaluate and potentially finance new midstream and LNG infrastructure projects. These projects could allow PDVSA and other Venezuelan producers to commercialize stranded gas resources and eventually export LNG. Baker Hughes CEO Lorenzo Simonelli emphasized the goal of creating an integrated gas value chain to turn Venezuela's substantial resources into reliable domestic supplies and future export opportunities.

Baker Hughes will provide technology for field development, gas infrastructure, and LNG, while Lindsayca will contribute engineering, construction, and operational capabilities. Fulcrum will focus on midstream and LNG development, financing, and market access. The agreement serves as a cooperation framework rather than a final investment commitment, with individual projects requiring separate agreements and approvals, including compliance with U.S. sanctions and export controls.

Additionally, Baker Hughes signed a memorandum of understanding with New Stratus Energy for potential future Venezuelan oil and gas developments. The company already has a significant presence in Venezuela, with over 1,200 oil production systems and around 240 turbomachinery units across 23 sites, having operated in the country for more than 60 years.