Baker Hughes Accelerates Underground Gas Storage in Egypt: Turning Geology into a Regional Energy Powerhouse

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Source: egyptoil-gas

Baker Hughes is accelerating the deepening of its strategic cooperation with the Egyptian Ministry of Petroleum and Mineral Resources (MoPMR). Amro Ismail Elsharkawi, Regional Director of Baker Hughes Egypt, revealed in an interview with Petrocast, a podcast under the Egyptian Regulatory Authority for Petroleum and Gas, on April 12 that the company is conducting a feasibility study for an underground natural gas storage project jointly with MoPMR and Egyptian Natural Gas Holding Company (EGAS). The move aims to fully leverage Egypt’s geological advantages to build it into a regional natural gas hub.

This initiative also focuses on improving natural gas production efficiency through advanced digital platforms, safeguarding national energy security, and optimizing the value of domestic resources.

As a world-leading energy technology company, Baker Hughes is a top-tier strategic partner of the Egyptian Ministry of Petroleum and Mineral Resources. The company actively participates in Egypt’s energy transition process. Its cooperation has expanded from traditional underground natural gas storage (UGS) to the green energy sector.

Baker Hughes focuses on supporting the construction of a multi-level energy storage system, including electrochemical battery energy storage, green hydrogen compression storage, and digital emission reduction measures.

Underground Hydrogen and Natural Gas Storage (UGS)

Argentina: In April 2026, Baker Hughes secured a strategic order from San Matias Pipeline S.A. to supply three NovaLT™16 gas turbines and centrifugal compressor units. As the legal entity and direct owner of the project, San Matias Pipeline S.A. is responsible for the overall progress, investment and bidding of the project.

Contreras, a major local Argentine engineering firm, undertakes the engineering, procurement and construction (EPC) of the onshore natural gas pipeline in San Matías Gulf. Stretching approximately 470-473 kilometers with a 36-inch diameter, the pipeline is designed to have a gas transmission capacity of 28 million cubic meters per day. The project aims to support the transportation of natural gas from the Vaca Muerta formation to the Mediterranean Gulf and potential underground storage, safeguarding the country’s liquefied natural gas (LNG) exports.

United States:Underground Hydrogen Storage Solution: In February 2026, Baker Hughes signed a memorandum of understanding with Vallourec to jointly develop the Delphy underground hydrogen storage solution. Integrated with Baker Hughes’ compression technology, the solution is designed to provide low-cost large-scale hydrogen storage for data centers and green steel production.

Vallourec is the sole supplier of special pipes for this solution; given the tiny size of hydrogen molecules and their tendency to cause metal embrittlement (hydrogen embrittlement), ordinary pipes are not suitable. Vallourec provides patented VAM® gas-tight threaded connections and high-grade anti-corrosion casings to ensure no hydrogen leakage in vertical storage wells.

Leucipa Platform Application: In partnership with Expand Energy, Baker Hughes has deployed the Leucipa™ digital platform across multiple natural gas fields in the United States, reducing emissions and optimizing production through real-time automation.

Egypt: In April 2026, Egypt signed a memorandum of understanding with Orascom Construction and China UEG to advance the construction of a Mediterranean green hydrogen hub in Alexandria Port. The project plans to deploy 500 MW of renewable energy generation capacity.

It aims to produce 480 tons of green ammonia per day. Orascom Construction is responsible for construction, with Petrojet providing construction support.

Special steel products mostly rely on international procurement optimized for hydrogen energy, while GASCO holds the right to plan the pipeline network. Baker Hughes provides compressor technology and hydrogen storage feasibility assessments, supporting the commissioning of some plants under the Suez Canal Economic Zone (SCZONE) National Clean Hydrogen Program in 2026.

These efforts help Egypt integrate green hydrogen as an alternative to natural gas into its existing ammonia production infrastructure.

Long-Duration Energy Storage and New Technologies

Canada & United States (Willow Rock Project): In January 2026, Baker Hughes announced an investment in and participation in Hydrostor’s Willow Rock compressed air energy storage project. Located in California, the project uses abandoned mines for compressed air energy storage and secured a $1.76 billion loan guarantee from the U.S. federal government in 2025, aiming to stabilize grid fluctuations caused by large-scale photovoltaic integration in the region.

Italy: In Tuscany, Baker Hughes supplied the NovaLT™12 gas turbine to Lucart, a paper manufacturing company, for the upgrade of its combined heat and power (CHP) system, significantly improving energy efficiency and reducing carbon emissions. Natural gas pipelines are provided by qualified suppliers of Snam, Italy’s national pipeline network operator, and must comply with high-pressure gas standards.

Green Hydrogen and Industrial Decarbonization

Saudi Arabia: Baker Hughes is a key technology supplier for the NEOM Green Hydrogen Project, the world’s largest green hydrogen project, providing advanced hydrogen compression technology.

United Kingdom: In June 2025, Baker Hughes was awarded a contract to supply advanced compressor technology for Eni’s Liverpool Bay carbon capture project, supporting industrial decarbonization in the region. Eni is responsible for the overall geological design and carbon dioxide sequestration plan. A highlight of the project is the repurposing of Eni’s existing Liverpool Bay offshore pipeline, converting it from natural gas transportation to CO₂ transportation.

Geothermal Energy Storage

United States (Partnership with Fervo Energy): Baker Hughes has partnered with Fervo Energy to design and deliver five new-generation geothermal power plants with a total capacity of 300 MW. Geothermal energy is regarded as a natural “underground thermal energy storage” reservoir, capable of providing 24/7 clean baseload power.

Amid the accelerated implementation of global underground natural gas, hydrogen, and long-duration energy storage projects, pipeline systems are facing increasingly stringent requirements.

This includes sealing performance, corrosion resistance, and high-pressure durability. Whether it is the feasibility study for Egypt’s underground natural gas storage, Vallourec’s Delphy vertical hydrogen storage wells, Argentina’s San Matias natural gas pipeline, or the U.S. Delphy hydrogen storage solution, reliable high-pressure flanges, pipe fittings, and connection solutions are core to all these projects.

As a professional enterprise specializing in the supply of oil & gas and new energy pipe fittings, GMpiping deeply understands that challenges including hydrogen embrittlement, CO₂ corrosion and high-cycle pressure environments pose far higher demands on flange sealing surfaces and pipeline fittings than traditional natural gas applications. We continuously provide forged flanges, weld neck flanges, blind flanges, pipelines, valves and special alloy pipe fittings compliant with API 6A, ASME B16.5 and hydrogen energy-specific standards for similar projects, ensuring zero leakage at joints and long-term safe operation.

If your project is in the planning stage of underground gas storage, green hydrogen compression or carbon capture pipelines, please feel free to contact us. Leveraging our AI model BANGUO, we can provide one-stop solutions, customized selection support, material compatibility verification and rapid delivery services, helping your energy storage and energy transition projects move smoothly from feasibility studies to engineering implementation, and jointly seize market opportunities in the construction of global clean energy infrastructure.

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