Baker Hughes secured a new supply contract with ST LNG for an 8.4‑million‑tonnes‑per‑annum LNG export terminal offshore of Matagorda, Texas. The agreement calls for two LM6000PF aeroderivative gas‑turbine‑driven centrifugal compressor trains and three NovaLT™16 gas‑turbine generator packages, giving Baker Hughes a complete compression‑and‑power solution for the project.
The deal expands Baker Hughes’ footprint in the U.S. LNG export market and underscores the company’s Industrial & Energy Technology (IET) segment strategy of pursuing high‑margin, long‑cycle projects. In 2025 the IET segment generated $13.41 billion in revenue, representing 48.35% of total company revenue, and the company’s backlog reached $32.4 billion by early 2026. The new contract adds to a record $2.3 billion of LNG equipment orders booked in 2025 and positions Baker Hughes to capture a share of the growing U.S. LNG export pipeline.
Management highlighted the strategic fit of the contract. Chairman and CEO Lorenzo Simonelli said the partnership “demonstrates Baker Hughes’ ability to deliver integrated, high‑performance solutions for complex LNG projects and reinforces our commitment to the U.S. LNG market.” ST LNG CEO Sharad Tak noted that Baker Hughes’ expertise will help the company achieve first LNG in the second quarter of 2030, the target for the terminal’s first phase of 2.1 MTPA.
The contract’s financial impact is significant. Baker Hughes reported a 4% rise in its stock price on the morning of the announcement, reflecting investor confidence in the company’s ability to secure large, high‑margin orders. The deal also strengthens Baker Hughes’ competitive position against peers such as SLB and Halliburton in the oilfield services and equipment space.
Baker Hughes entered 2026 on the heels of its most profitable year, reporting record adjusted EBITDA of $4.83 billion on revenues of $27.7 billion in 2025. The IET segment achieved a 20% EBITDA margin in Q4 2025, and the company’s backlog approached $33 billion. The company will release its first‑quarter 2026 results on April 23, 2026, where the new contract is expected to contribute to the company’s ongoing growth trajectory.
The ST LNG project is planned in four phases, with the first phase targeting initial production in mid‑2030. The terminal’s deepwater port license is being pursued through the U.S. Maritime Administration, and the project’s total capacity is 8.4 MTPA.
Baker Hughes’ diversification strategy extends beyond LNG, with investments in power systems for data centers and advanced nuclear applications. The new contract aligns with the company’s broader goal of leveraging its technology across industrial sectors to reduce reliance on the cyclical oilfield services market.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.