The process of converting natural gas into liquid form (LNG) by cooling it to extreme temperatures for storage and transport. Subcontractors supporting liquefaction facilities must meet strict safety and technical certifications. Work scopes often include maintenance, insulation, and cryogenic system servicing.
Liquefaction
Related Terms
Delaware Basin
IndustryA high-activity oil and gas producing region spanning west Texas and southeast New Mexico, part of the larger Permian Basin. Subcontractors working here face high equipment demand, competitive labour markets, and fast-paced multi-well pad operations. It remains one of the busiest deployment zones for field service companies in North America.
Alternative Delivery
IndustryA project procurement model where design and construction are bundled under one contract, such as design-build or EPC. Subcontractors often engage through a prime contractor rather than directly with the owner. Scope, risk, and payment terms can differ significantly from traditional bid-build arrangements.
KPI (Key Performance Indicator)
IndustryA measurable target used to evaluate a subcontractor's performance on safety, productivity, or quality. Clients track KPIs to assess contract compliance and award future work. Common field KPIs include incident rates, on-time mobilisation, and equipment uptime.
AFE (Authorization for Expenditure)
IndustryA budgeting document used in oil and gas projects that outlines expected costs and seeks approval before work begins. Subcontractors often work under AFEs issued by operators.
Offtake Agreement
IndustryA long-term contract where a buyer commits to purchasing a set volume of product from a producer. For subcontractors, these agreements signal stable, ongoing site activity and sustained demand for field services. They often underpin project financing, making worksites more financially secure for service providers.
Direct-Air Capture
IndustryDAC (Direct-Air Capture) is a technology that pulls CO₂ directly from the atmosphere using specialised equipment. Subcontractors may support DAC facility construction, maintenance, or mechanical services as energy clients expand carbon removal projects. It is an emerging work sector tied to federal clean-technology incentives in Canada.
Latest Industry News
Baker Hughes Lands Compression, Liquefaction Orders for Venture Global's Gulf Coast Buildout
Baker Hughes secured orders to supply gas compression for the Cloud Connector Pipeline and modular liquefaction equipment for Plaquemines LNG, expanding Venture Global's Louisiana infrastructure footprint.
23 days agoIndustryBaker Hughes Adds Six More Liquefaction Blocks to CP2 LNG Scope
Baker Hughes has expanded its equipment supply deal with Venture Global to cover 12 liquefaction modules at the CP2 LNG project in Louisiana, signaling fresh mechanical and site-prep work ahead.
2 months agoIndustryOttawa Approves $3.5B FortisBC LNG Expansion at Tilbury Island
The federal government has fast-tracked a $3.5-billion expansion of FortisBC's Tilbury LNG terminal in Delta, B.C., with construction on new storage tanks and liquefaction infrastructure set to begin in early 2027.
15 days agoIndustrySapphire Gas Solutions Buys EDGE LNG, Gains 200,000 Gal/Day Capacity
Sapphire Gas Solutions has acquired Texas-based EDGE LNG, adding 200,000 gal/day of modular liquefaction capacity and expanding its integrated LNG supply chain across the southern US.
1 month agoRelated Guides
How Operator Mergers and Acquisitions Affect Your Subcontract Agreements
When operators merge, get acquired, or sell assets, subcontractor agreements are caught in the middle. Learn how M&A activity affects your MSA, payment terms, vendor status, and what to do before, during, and after a deal closes.
Industry GuideHow Rig Count Trends Affect Subcontractor Demand and What to Do About It
Rig counts are the earliest signal of where field service work is heading. Learn how to read drilling activity trends, anticipate demand shifts, and position your crew before the phone stops ringing.
Industry GuideWhat Is an AFE in Oil and Gas and How Does It Affect Subcontractor Payments?
An AFE (Authorization for Expenditure) controls every dollar spent on an oilfield project. Learn how it affects your billing, change orders, and cash flow as a subcontractor.
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