Baker Hughes, PETRONAS Collaborate to Support Asia’s Energy Expansion

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Baker Hughes and PETRONAS will explore implementing enhanced LNG services, mature asset solutions, AI, and CCUS, among other technological solutions.

Baker Hughes and Petroliam Nasional Berhad (PETRONAS) entered a collaborative partnership to enhance local supply-chain capabilities and explore implementing a variety of technology solutions to support the delivery of Asia’s energy expansion and transition.

Key Takeaways

  • Baker Hughes and PETRONAS are partnering to boost Asia's energy expansion and transition.
  • The collaboration focuses on LNG, digital solutions, and sustainable energy like CCUS.
  • Baker Hughes is expanding its gas turbine repair facilities in Malaysia to enhance regional service.

“It is critically important to grow alongside our customers in Asia-Pacific, including PETRONAS, as we work toward our shared goal of sustainable energy development to provide for a world that needs more reliable, secure, and lower-carbon energy,” said Lorenzo Simonelli, Baker Hughes’ Chairman and CEO.

The memorandum of understanding (MoU) includes collaboration on:

  • Enhanced LNG services footprint and cross-border talent training and development programs to strengthen local field operations capabilities
  • Exploration and production, chemicals, and mature assets solutions
  • Digital solutions, including AI
  • Sustainable energy solutions, including carbon capture, utilization, and storage (CCUS), and lubricants and biofuels for the turbomachinery supply chain

“Our extended strategic partnership with Baker Hughes is poised to drive excellence in project delivery, decarbonization, supply-chain resilience, and technology adoption,” said Ir. Ts. Mohd Yusri Mohamed Yusof, PETRONAS’ Senior Vice President of Projects, Technology & Health, Safety, Security & Environment. “It signifies what’s possible when two industry leaders unite to foster innovation ecosystems and shape the future of energy. Furthermore, the setting up of an enhanced aeroderivative facility here is a positive development towards the region’s cleaner energy pursuit, underlining the strong partnerships needed to deliver Asia’s energy transition.”

Baker Hughes announced plans to expand on its existing services footprint in Malaysia to develop a full aeroderivative gas turbine module repair services facility, inclusive of disassembly, assembly, grinding, and testing capabilities. Currently, Baker Hughes operates two turbomachinery services facilities in Malaysia: an aeroderivative gas turbine repairs facility in Port Klang, Selangor; and a heavy-duty gas turbine technology repairs, field service, and digital services facility. With an installed base of over 600 gas turbines and continued expected growth given the energy expansion, these augmented service capabilities will provide enhanced service to customers across the region to accelerate service turnaround time and enable continued best-in-class reliability and availability.

Baker Hughes is undergoing assessments to identify the best location for placing its new expanded aeroderivative gas turbine services footprint in the country.

“We look forward to working alongside PETRONAS, as well as other local partners, to realize this additional localization effort to help ensure energy is available today and in the future,” Simonelli said.

Signing of the memorandum of understanding on a strategic partnership. Credit: Baker Hughes

Signing of the memorandum of understanding on a strategic partnership. Credit: Baker Hughes

Last week, Saipem awarded Baker Hughes a contract to supply three advanced CO2 centrifugal compressor trains with electric motors and Lufkin Gears gearboxes for Eni’s Liverpool Bay carbon capture and storage (CCS) project in the United Kingdom. This order was booked in the first quarter of 2025.

Baker Hughes’ complete compressor package will be used to reinject CO2. This is part of Saipem’s initiative to transform a traditional gas compression and treatment facility at Point of Ayr, located in north Wales, into a CO2 electrical compression station. This station will enable the permanent storage of CO2 in offshore depleted fields beneath Liverpool Bay.

“We’re proud to support Saipem and Eni with our advanced, proven compression technologies in a crucial project that will facilitate sustainable energy development in the UK by decarbonizing industry,” said Alessandro Bresciani, Senior Vice President of Climate Technologies Solutions at Baker Hughes. “At Baker Hughes, we are committed to providing technology solutions that enhance the economic viability of CO2 projects at scale, as we firmly believe that CCUS plays a vital role in driving sustainable energy development.”

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