Page 14 - BAKER HUGHES PR REPORT - APRIL 2024

During the first quarter of this year, Baker Hughes secured an order from
compatriot engineer Black & Veatch to supply the planned Cedar LNG project
in Canada with electric driven liquefaction technologies.

“LNG equipment orders totaled almost $200 million during the quarter.
Excluding LNG equipment, our IET business booked more than $2.7 billion of
orders, the second highest of any quarter since the 2017 merger,”
CEO Lorenzo Simonelli said during the company’s first quarter earnings
conference call on Wednesday.

He said this was attributed to non-LNG gas tech equipment orders more
than tripling from prior-year levels.

LNG growth

Simonelli said that “strong underlying natural gas demand will spur robust
growth in LNG over the coming decades.”

Through the end of this decade, Baker Hughes expects demand to increase
by “mid-single digits annually.”

“We believe this will support an installed nameplate capacity of 800 mtpa by
2030. Looking out to 2040, we expect LNG demand growth to continue,
requiring further capacity additions beyond 800 mtpa,” he said.

“While there could be periods of price volatility driven by temporary
dislocations in supply and demand over this time period, we see these as
opportunities for accelerated demand creation LNG consumers, who tend to
be very price sensitive, typically respond to lower prices with stronger
demand,” Simonelli said.

“We have seen evidence of this recently. Global LNG demand is up 4 percent

year to date, against the backdrop of an approximate 50 percent decline in
LNG prices over the same period,” he said.

FIDs

https://lngprime.com/americas/baker-hughes-won-200-million-in-lng-equipment-orders-in-
q1/110589/