Industrial gas giant
) has finally clinched its first major domestic liquefied natural
gas (LNG) heat exchanger order for a liquefaction project in
The Pennsylvania-based company will supply its proprietary
C3MR LNG liquefaction technology and equipment for power and
Dominion Resources, Inc.
) major liquefaction project. The project will be constructed at
Dominion's existing Cove Point LNG import facility at Lusby, Md.
Air Products was chosen by a joint venture between IHI E&C
International Corporation and Kiewit Corporation for the
Air Products' MCR main cryogenic heat exchanger will be
installed at the core of the propane pre-cooled mixed refrigerant
liquefaction process. The Cove Point liquefaction process will be
designed to produce 5.25 million tons of LNG annually and is
expected to come online in 2017.
Air Products' proprietary LNG technology, which is available
across 15 nations globally, processes and cryogenically liquefies
natural gas for consumer and industrial application. This
innovative technology has been designed to address the growing
energy needs across the globe.
Air Products provides process technology and key equipment to
the LNG industry for natural gas liquefaction process as well as
small and middle-level LNG facilities. The LNG technology is
gaining importance as it meets the increasing global need for
Most of the LNG manufactured globally leverages Air Products'
technology. The company has shipped its LNG heat exchangers to
remote places, including locations in Indonesia, Algeria,
Nigeria, Peru, Malaysia, Egypt, Oman, Yemen and Qatar.
Air Products, in July 2012, shipped the 100th LNG heat
exchanger made at its Wilkes-Barre facility in Pennsylvania. Some
of the heat exchangers manufactured at this plant are as large as
16.5 feet in diameter, 180 feet long and weigh as much as 500
Air Products benefits from a diverse customer base, sustained
pricing power and cost-reduction measures. New business deals and
strategic investments are expected to support results in fiscal
However, volume in the core Merchant Gases segment may remain
under pressure partly due to weakness across a number of markets
in Europe. Air Products' electronics business may also continue
to see weak demand. Moreover, higher energy costs pose a threat
to margin expansion.
Air Products currently retains a Zacks Rank #4 (Sell).
Other companies in the chemical industry with favorable Zacks
Shin-Etsu Chemical Co., Ltd.
). While Shin-Etsu Chemical retains a Zacks Rank #1 (Strong Buy),
Celanese holds a Zacks Rank #2 (Buy).
AIR PRODS & CHE (APD): Free Stock Analysis
CELANESE CP-A (CE): Free Stock Analysis
DOMINION RES VA (D): Free Stock Analysis
SHIN-ETSU CHEM (SHECY): Get Free Report
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