Baker Hughes to Supply Drag-reducing Agents to Genesis Energy

Baker Hughes, an energy technology company, announced a significant award, booked in the second quarter, from Genesis Energy to provide drag-reducing agents (DRAs) for two critical offshore oil pipelines serving the U.S Gulf Coast. The multi-year agreement includes chemicals, associated management services, and the deployment of Leucipa™ automated field production solution to optimize operations.

Through the agreement, Baker Hughes will provide DRAs from its FLO product line to support the transportation of both light and heavy crude from offshore platforms to storage and refining facilities in Texas and Louisiana. The use of DRAs and midstream solutions will significantly increase the capacity of the Cameron Highway Oil Pipeline and Poseidon systems, each of which is operated and 64% owned by Genesis Energy, allowing for increased oil production and enhanced crude slate flexibility in the Gulf.

“As America’s energy demand continues to grow, it is crucial that midstream capacity keep up with production to avoid bottlenecks,” said Amerino Gatti, executive vice president of Oilfield Services & Equipment at Baker Hughes. “Fortunately, technology provides the solution to this challenge. By utilizing DRAs to reduce friction between pipelines and the hydrocarbon resources that flow through them, as well as AI to optimize 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.”

The advanced chemical formulations are manufactured using proprietary technology that allows them to more efficiently dissolve in crude, making them highly effective for a variety of crude types, including those produced along the U.S. Gulf Coast. Their versatility across temperature ranges, ability to maintain crude quality, and innovative delivery systems enhance pipeline efficiency and improve operational flexibility.

To meet the growing demand for these products, Baker Hughes has expanded its chemicals production capacity in the United States. This expansion will ensure a consistent supply of quality products to support this critical element of the country’s offshore energy infrastructure.