Energy technology company Baker Hughes has secured a multi-year agreement with Genesis Energy to supply drag-reducing agents (DRAs) for two vital offshore oil pipelines off the US Gulf Coast.
The contract, recorded in the second quarter, encompasses chemicals, management services and the implementation of the Leucipa automated field production system to enhance operations.
The partnership will see Baker Hughes deliver DRAs from its FLO product line, which will facilitate the transport of both light and heavy crude oil from offshore platforms to storage and refining sites in Louisiana and Texas.
The application of midstream solutions and DRAs is set to increase the capacity of the Cameron Highway Oil Pipeline and Poseidon systems, which are 64% owned and operated by Genesis Energy.
This move is expected to boost oil production and provide greater flexibility in handling different types of crude in the Gulf.
Baker Hughes Oilfield Services & Equipment executive vice-president Amerino Gatti said: “As America’s energy demand continues to grow, it is crucial that midstream capacity keep up with production to avoid bottlenecks. Fortunately, technology provides the solution to this challenge.
“By utilising DRAs to reduce friction between pipelines and the hydrocarbon resources that flow through them, as well as AI to optimise their operation, Genesis can increase its capacity without the need for large investments of time and capital, all while helping the country meet its energy needs.”
Produced using proprietary technology, the chemical formulations are particularly efficient at dissolving in crude, making them suitable for various types of crude including those from the US Gulf Coast.
Their capacity to adjust to fluctuations in temperature, maintain the crude quality and innovative delivery systems are expected to boost pipeline efficiency and operational flexibility.
Baker Hughes has also increased its chemical production capacity in the US in response to the escalating demand for these products, ensuring a steady supply and supporting the nation's offshore energy infrastructure.
Earlier in the year, Baker Hughes unveiled a multi-year contract with Dubai Petroleum Establishment to provide coiled-tubing drilling services.
