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Baker Hughes (BKR) Fuels Cedar LNG With Electric-driven Tech

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Baker Hughes Company (BKR - Free Report) ), a leading energy technology company, has recently clinched a significant deal from Black & Veatch, a global leader in engineering, construction and consulting services.

The contract involves supplying electric-driven liquefaction technologies for the Cedar LNG project in Canada, marking a pivotal step toward environmentally conscious liquefied natural gas (LNG) production. This collaboration highlights the commitment of both companies toward fostering greener energy practices and promoting sustainable development.

A Greener Approach to LNG Production

Baker Hughes will provide Black & Veatch with a suite of turbomachinery equipment, tailored for the Cedar LNG project. The suite includes four electric-driven main refrigeration compressors, two electric-driven boil-off gas compressors and six centrifugal pumps.

The utilization of renewable electricity to power Cedar LNG promises to position it as one of the world's lowest carbon-intensity LNG facilities. This innovative approach reflects a concerted effort to mitigate environmental impact and embrace cleaner energy solutions within the LNG sector.

Empowering Indigenous Communities

The Cedar LNG project represents a collaborative effort between the Haisla Nation and Pembina Pipeline Corporation, with the Haisla Nation spearheading the initiative. Beyond its environmental implications, the project holds socio-economic significance, serving as a pillar of the Haisla Nation's economic and social development strategy.

Notably, Cedar LNG marks a historic milestone for the Haisla Nation, as it signifies its first direct ownership and participation in a major industrial venture within its territory. This initiative represents a significant change toward empowering indigenous communities and achieving economic independence, thereby laying the groundwork for development models that are both inclusive and sustainable.

Industry Leaders' Perspectives

Commenting on the partnership, Laszlo von Lazar, president of Black & Veatch’s Energy & Process Industries business, emphasized the project's role in advancing decarbonization efforts. He highlighted Cedar LNG's potential to provide lower-carbon LNG alternatives, aligning with global decarbonization agendas.

Similarly, Ganesh Ramaswamy, executive vice president of Industrial & Energy Technology at Baker Hughes, underscored the significance of electrification in driving the energy transition. He emphasized Baker Hughes' commitment to delivering efficient and environmentally friendly solutions, thus contributing to the evolution of the natural gas market.

Continued Momentum in LNG Market

The contract with Black & Veatch represents another milestone for Baker Hughes in the LNG market, reaffirming the company's position as a key player in providing sustainable gas technology solutions. This achievement builds upon a series of significant LNG orders secured by Baker Hughes over the past year, further consolidating its presence in the industry.

Zacks Rank & Key Picks

Currently, Baker Hughes carries a Zack Rank #3 (Hold).

Some better-ranked stocks in the energy sector are Murphy USA Inc. (MUSA - Free Report) , Global Partners (GLP - Free Report) and Sunoco LP (SUN - Free Report) . While Murphy USA and Global Partners sport a Zacks Rank #1 (Strong Buy), Sunoco LP carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Murphy USA is a leading independent retailer of motor fuel and convenience merchandise in the United States.

The Zacks Consensus Estimate for MUSA’s 2024 EPS is pegged at $26.35. The company has a Zacks Style Score of B for Growth and B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.

Global Partners is a leading operator of gasoline stations and convenience stores. Over the past 60 days, GLP has witnessed upward earnings estimate revisions for 2023 and 2024.

The Zacks Consensus Estimate for Global Partners’ 2024 and 2025 EPS is pegged at $3.90 and $4.47, respectively. GLP currently has a Zacks Style Score of A for Value.

Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate stable cash flow. 

The Zacks Consensus Estimate for SUN’s 2024 earnings per share (EPS) is pegged at $4.96. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.


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