Technip Energies and Baker Hughes have signed a deal that would see the two mega-contractors work together to develop modular liquefied natural gas systems for the onshore market.

This modular approach to onshore construction offers key advantages over the traditional stick-build model including less commissioning at an LNG site and simplified transport logistics, which together can cut costs and accelerate schedules.

The Technip and Baker Hughes memorandum of understanding covers the joint development of LNG modules whose capacity ranges between 1 million and 2 million tonnes per annum.

The aim is to reduce time-to-market for LNG to meet today’s energy demand.

Assuming it is finalised, this agreement will see the companies provide an additional offering to their proprietary modularised solutions: Baker Hughes’ mid-scale modular solution, with a production capacity of 0.8 million to 1 million tpa, and Technip Energies’ SnapLNG, a fully electrified offering with a production capacity of 2 million to 3 million tpa.

Technip chief executive Arnaud Pieton said: “Co-operating in advancing technology in LNG with our long-term partner Baker Hughes is an important step for the energy industry and for our clients.

“The combination of our expertise, modular approach and references will enable shorter delivery times and better affordability.”

He also said the tentative agreement reflects Technip’s “commitment to deliver low-emission liquefaction solutions through electrification and the elimination of fugitive emissions to accelerate the energy transition”.

Baker Hughes chief executive Lorenzo Simonelli called the agreement “a milestone in our relationship with Technip Energies [that] is mutually beneficial to both companies, leveraging our respective technology expertise and proven track record in the LNG space while maximising benefits for our customers.”

He said that “the ability to accelerate time-to-production through modularised solutions can be a differentiator”.

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