Baker Hughes and Nigeria LNG Seal 13-Year Turbomachinery Deal for Train 7, Lifting Bonny Island to 30 Million Tonnes Per Year

Baker Hughes secured a 13-year lifecycle service agreement with Nigeria LNG Limited on June 29, 2026, covering turbomachinery at the company's six-train liquefaction complex on Bonny Island in the Niger Delta. The contract extends a partnership between Baker Hughes and Nigeria LNG that has run for more than 20 years. Train 7, which the agreement supports, is scheduled for completion in 2027 and will take Africa's largest LNG facility from 22 million tonnes per annum to 30 million tonnes per annum.

The service scope covers four heavy-duty gas turbines and their associated centrifugal compressors, plus two additional gas turbines that provide power generation for the facility. Baker Hughes first supplied all six units under an equipment contract awarded in 2021. The new 13-year maintenance and optimization agreement locks Baker Hughes into the service role through Train 7's full expected operating life.

Who Owns Nigeria LNG and Why It Matters

Nigeria LNG operates as an incorporated joint venture. The Nigerian National Petroleum Company Ltd, the state oil company, holds 49 percent. Shell Gas B.V. holds 25.6 percent, making Shell the largest private shareholder and the de facto operator of the plant's commercial strategy. TotalEnergies Gaz et Electricite Holdings holds 15 percent, and Eni International N.A. N.V. S.arl holds the remaining 10.4 percent. Each shareholder carries separate upstream gas supply obligations feeding the liquefaction trains, meaning the Train 7 capacity increase directly affects each partner's LNG offtake position and annual cash flow.

Shell's 25.6 percent stake is a cornerstone of its African LNG portfolio. The Bonny Island plant has operated since 1999 and delivered more than 6,000 LNG cargoes globally. TotalEnergies holds its 15 percent alongside active LNG growth in East Africa and the Americas. Eni's 10.4 percent position complements its newer African LNG projects in Congo-Brazzaville and Tanzania, where the Italian producer is building a diversified West and East Africa LNG position.

Train 7 Economics at Current Prices

Train 7 received its final investment decision in December 2019. The EPC contract was awarded to the SCD JV Consortium, comprising Saipem, Chiyoda, and a Daewoo-affiliated entity, in May 2020. The 8 million tonne per year increment represents a 36 percent capacity increase above the current six-train facility.

Using the standard industry conversion of 52.3 MMBtu per metric tonne of LNG, the Train 7 expansion represents 418 million MMBtu of additional annual output. At current TTF-equivalent European spot prices of $14.60 per MMBtu, that output carries a gross market value of $6.1 billion per year for the NLNG partnership. Most NLNG cargoes price off a blend of Henry Hub and European benchmarks, so realized netbacks will differ. The figure illustrates why a 13-year turbomachinery service commitment is commercially material for Baker Hughes's Industrial and Energy Technology segment.

Baker Hughes's LNG Services Strategy

Baker Hughes separated from General Electric in November 2019 and has since positioned its LNG Solutions business as a recurring service revenue engine. The company has placed turbomachinery equipment at most major new liquefaction trains commissioned since 2015, including trains for Venture Global LNG, Rio Grande LNG, and Sempra Infrastructure's Port Arthur LNG Phase 2 project. The Nigeria deal adds a long-duration service stream on top of the equipment position Baker Hughes established with its 2021 turbine award.

The agreement includes iCenter digital services, running on Baker Hughes's Cordant industrial software platform for remote monitoring and diagnostics. A local engineering team based at the Baker Hughes Service Centre in Port Harcourt will staff the contract. Nigeria LNG Managing Director Adeleye Falade cited Baker Hughes's "industry-leading lifecycle services and digital expertise" as the basis for extending the relationship. Baker Hughes Chief Growth Officer Maria Claudia Borras described the deal as evidence of the company's "commitment to the region."

Atlantic Basin Supply Competition

The Train 7 expansion comes as Atlantic Basin LNG buyers compete for cargoes to replace reduced Persian Gulf supply. Persian Gulf LNG shipments to Europe fell by roughly 9 billion cubic meters in May 2026 following Strait of Hormuz disruptions, per IndexBox analysis. Alternative suppliers covered approximately 90 percent of that shortfall. Nigeria's location on the Atlantic coast gives Bonny Island a shorter shipping route to European import terminals than Middle Eastern or Australian competitors, positioning it as a preferred swing supplier when buyers seek non-Gulf volumes.