2026-10-09
- Baker Hughes signed a strategic alliance with PDVSA, Lindsayca and Fulcrum LNG in Caracas on 2026-10-05 to restore and expand Venezuela’s natural gas infrastructure.
- It also signed an MoU (Memorandum of Understanding) with New Stratus Energy to support future oil and gas developments.
- The near-term focus is infrastructure upgrades for PDVSA’s own gas needs and domestic power generation; the medium-to-long-term focus is open-access midstream and LNG infrastructure.
- The alliance is a cooperation framework, and each project requires definitive agreements, internal approvals and U.S. sanctions compliance, including OFAC authorization.
Baker Hughes announced two agreements on 2026-10-05 to rebuild and expand infrastructure across Venezuela’s natural gas value chain. One is a strategic alliance with state oil company PDVSA, Lindsayca and Fulcrum LNG signed in Caracas, and the other is an MoU with New Stratus Energy. The company said the agreements link upstream development, midstream infrastructure, gas monetization and LNG commercialization, with the potential to export the first LNG molecules produced in Venezuela. The alliance is a cooperation framework rather than approval of any specific project, and each project would need separate definitive agreements and sanctions-related authorizations.
The alliance was signed in Caracas by Baker Hughes, PDVSA, Lindsayca Inc. (a Houston-based energy infrastructure engineering, fabrication, construction and operations company) and Fulcrum LNG, Inc. (a U.S.-based independent developer of midstream gas and LNG infrastructure focused mainly on Latin America and the Atlantic Basin). Baker Hughes contributes oil and gas field development, gas infrastructure and LNG solutions. Lindsayca contributes EPC (Engineering, Procurement and Construction) and operational capabilities. Fulcrum contributes midstream and LNG project development, financing and market access.
The alliance targets projects to process, transport, commercialize and export natural gas, which the release describes as a first in Venezuela’s history. In the near term, the work is to identify and carry out infrastructure upgrades to meet PDVSA’s internal gas needs and supply the domestic market, including gas for power generation. In the medium to long term, the partners will evaluate developing and financing open-access midstream and LNG infrastructure so PDVSA and other upstream operators can monetize their gas.
The second agreement, the MoU with New Stratus Energy, supports potential oil and gas prospects, with Baker Hughes applying technologies across subsurface, drilling, production, processing, digital, emissions abatement, power generation, monetization and LNG. Baker Hughes Chairman and CEO Lorenzo Simonelli said a central objective is an integrated gas value chain that supplies the domestic market and enables future exports. Fulcrum LNG CEO Jesus Bronchalo called the PDVSA alliance a historic opportunity to maximize the use and value of Venezuela’s natural gas resources.
- Contract value, gas volumes, facility capacities and project schedules were not disclosed in the announcement or the reports reviewed.
- Baker Hughes has operated in Venezuela for more than 60 years, with an installed base of over 1,200 oil production systems, the largest artificial lift footprint, significant flexible pipe infrastructure and about 240 turbomachinery units across 23 sites.
- Baker Hughes operates in more than 120 countries.
- Lindsayca’s Venezuelan affiliate, Lindsay C.A., was established in 1986.
- Two agreements were announced: one strategic alliance and one MoU.
Timeline
- 2026-10-05 — Baker Hughes announces the strategic alliance with PDVSA, Lindsayca and Fulcrum LNG, signed in Caracas, and the MoU with New Stratus Energy.
- 2026-10-08 — Hydrocarbon Engineering reports the agreements.
- Next steps — dates for project-level definitive agreements, internal approvals and OFAC authorizations have not been disclosed.
Note
Open-access infrastructure refers to processing, transport or liquefaction facilities that multiple operators can use on defined terms. OFAC is the U.S. Treasury agency that administers sanctions.