Baker Hughes will supply Kodiak Gas Services with roughly 1 gigawatt of gas turbines and generators for delivery by 2030, under a multi-year agreement that opens a path to as much as 1.8 GW of power capacity over time. The companies announced the deal Wednesday, July 8.
The initial order includes NovaLT16 gas turbines, Frame 5 gas turbines and BRUSH Power Generation generators. Baker Hughes said the equipment is meant to back behind-the-meter power projects in key US markets, where rising electricity demand and grid limits are pushing customers toward power they can install and run on their own site instead of waiting on a utility connection.
Why data centers are driving the order
Kodiak, based in The Woodlands, Texas, provides contract compression, distributed power and related infrastructure services to oil and gas producers, midstream operators and digital infrastructure customers. The company said the framework backs its plan to expand its power infrastructure business while meeting customers that need equipment fast.
Kodiak President and CEO Mickey McKee said customers need "dependable, efficient and rapidly deployable power solutions." Baker Hughes Chairman and CEO Lorenzo Simonelli said the deal "reflects the growing need for flexible power generation technologies."
Deal structure
The agreement is a multi-year rolling framework, which the companies said gives them room to adjust capacity commitments as data center demand and project timelines change. It also covers technical training and the supply of spare parts, and the two companies said they have a mutual interest in a longer-term services arrangement to maintain the equipment once installed.
Baker Hughes Vice President of Sales for Gas Technology Equipment Riccardo Barbieri and Kodiak Chief Financial Officer John Griggs signed the agreement in Houston.
