Anticipating demand growth for natural gas and LNG as critical elements of the energy transition, Baker Hughes remains committed to driving growth in its businesses that support a lower-carbon future – S&P Global reports.

Baker Hughes is committed to helping its customers reduce their carbon footprints. The company previously announced its plans to achieve net-zero carbon emissions by 2050.

Natural gas will be the key transition fuel and possibly a destination fuel for a lower-carbon future, Lorenzo Simonelli, CEO of Baker Hughes said. As a result, demand will grow at more than twice the pace of oil over the next 10 years, while LNG demand will climb at an annual rate of 4% to 5%, he said.

Products offered through its Turbomachinery and Process Solutions segment, or TPS segment, provide growth opportunities for Baker Hughes in 2020, Simonelli said. The segment saw fourth-quarter 2019 orders decline about 10% on the year to $1.9 billion, while equipment orders fell 16% year over year with a book-to-bill of 1.5. However, the company also booked an award for the liquefaction equipment on Total's Mozambique Area 1 LNG project and won orders in onshore/offshore production projects, including two floating production storage and offloading awards in Latin America.

The CEO said LNG final investment decisions in 2020 would lag behind the 2019 levels. Still, the outlook for the segment remains constructive as the company executes the largest backlog in its history and expects continued growth in services and non-LNG equipment awards, Simonelli said.

CFO Brian Worrell said revenue for the TPS segment would grow by roughly 20% and margins will continue to expand from 2019 levels. Revenue conversion is weighted towards the second half of the year based on project timing, and orders for the segment could be flat to lower in the low double digits compared to 2019, he said.