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Baker Hughes Secures Key Role in NextDecade's LNG Expansion Plans

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Baker Hughes Company (BKR - Free Report) ), a leading energy technology company, and NextDecade Corporation (NEXT - Free Report) have strengthened their partnership with a new framework agreement focused on the expansion of the Rio Grande LNG project. Under this agreement, NextDecade will utilize Baker Hughes' cutting-edge gas turbine and refrigerant compressor technology for Trains 4 through 8 at the Rio Grande LNG Facility in Texas. Additionally, Baker Hughes will provide maintenance services to ensure the long-term reliability and efficiency of these equipment packages.

NextDecade Sees BKR's Role as Critical to LNG Expansion

Matt Schatzman, chairman and CEO of NextDecade, emphasized the vital role of Baker Hughes' technology and expertise in ensuring safe and reliable operations of the Rio Grande LNG facility. He also noted that this collaboration aligns with NextDecade’s goal of establishing Rio Grande LNG as one of the largest LNG production and export facilities globally.

BKR Strengthens LNG Presence With Advanced Tech Solutions

Baker Hughes, a leader in energy technology solutions, views this agreement as a continuation of its strong partnership with NextDecade. Lorenzo Simonelli, chairman and CEO of BKR, reaffirmed the company's dedication to innovation in LNG operations, highlighting its role in enhancing efficiency and reliability. He also underscored that this collaboration reflects Baker Hughes' broader commitment to delivering advanced solutions to meet growing energy demand.

NextDecade Progresses With Trains 4 and 5

NextDecade is moving forward with the commercialization of Trains 4 and 5 at the Rio Grande LNG Facility, with plans to make final investment decisions soon. The development is subject to regulatory approvals, securing engineering, procurement, and construction (EPC) contracts, and obtaining funds. Once approved, construction will commence on these trains and their related infrastructure.

In parallel, NextDecade has begun the permitting process for Trains 6 through 8, which are expected to add approximately 18 million tons per annum (MTPA) of liquefaction capacity upon completion. NEXT fully owns these additional trains, positioning it for significant growth in LNG production.

BKR Anticipates Orders as NextDecade’s LNG Project Advances

As NextDecade moves ahead with its expansion plans, Baker Hughes expects to receive equipment orders under the framework agreement. The collaboration aligns with the increasing global demand for LNG and supports the development of key infrastructure that strengthens energy security and supply chains.

With this agreement, Baker Hughes cements its role as a critical technology provider for LNG infrastructure, further reinforcing its market position in the energy transition era.

Zacks Rank & Key Picks

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

Investors interested in the energy sector may look at a couple of better-ranked stocks like Antero Resources Corporation (AR - Free Report) and EOG Resources, Inc. (EOG - Free Report) . While Antero Resources presently sports a Zacks Rank #1 (Strong Buy), EOG Resources carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Resources, one of the fastest-growing natural gas producers in the United States, boasts a strategic acreage position in the low-risk properties of the Appalachian Basin. The company has more than two decades of premium low-cost drilling inventory in the prolific basin, securing a strong production outlook. AR is well-positioned to capitalize on the increasing demand for LNG, both in the United States and globally. 

EOG Resources is an oil and gas exploration and production company with an attractive growth profile, upper-quartile returns and a disciplined management team. With highly productive acreages in premier oil shale plays like the Permian and Eagle Ford, the company has numerous untapped high-quality drilling sites. Additionally, EOG maintains a strong balance sheet and continues to reward shareholders with regular and special dividends. 

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