Leading industrial gas company
Air Products and Chemicals Inc.
(
APD
) has achieved another key milestone for its liquefied natural gas
(LNG) technology and equipment as it has been chosen for a major
off-shore LNG project in Malaysia.
The Pennsylvania-based company has landed an equipment and process
license agreement with PETRONAS Floating LNG 1 Ltd., a fully-owned
unit of Malaysia's national oil and gas company Petroliam Nasional
Berhad. This marks the second global off-shore floating LNG project
contract for Air Products joining a separate project in Western
Australia.
Under the pact, the company will supply LNG technology and
equipment for the PETRONAS Floating LNG Project 1 (PFLNG 1).
Roughly 1.2 million tons of LNG is expected to be produced annually
from the PETRONAS LNG Project when it comes online in late 2015.
The news follows Air Products' announcement last week that it has
manufactured the 100th LNG heat exchanger at its Wilkes-Barre
facility in Pennsylvania. The milestone unit is slated to be placed
for the "Donggi-Senoro" LNG Project in Indonesia in 2014.
Located off the coast of Bintulu, Malaysia, PFLNG 1 will leverage
Air Products' AP-N LNG process and equipment. The AP-N process is
the most efficient nitrogen recycle LNG process in the industry and
is a perfect fit for small scale floating LNG applications.
The AP-N LNG equipment includes heat exchangers to be made in the
Wilkes-Barre facility, compressor-expanders to be assembled in
Fogelsville, Pennsylvania, and economizer cold boxes to be
manufactured in Malaysia. The equipment will be dispatched from
these facilities for assembly and installation on the PFLNG 1
vessel.
The deal builds on Air Products' long association with PETRONAS.
Earlier, the company has supplied its LNG technology and equipment
for PETRONAS' land-based Bintulu facility for LNG trains.
Air Products' proprietary LNG technology, which is available across
15 nations globally, processes and cryogenically liquefies natural
gas for consumer and industrial application. This industry-leading
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 cleaner
energy.
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 has
placed more than 80 heat exchangers for LNG projects from its
Wilkes-Barre plant over the last 40 years.
We currently have a long-term Neutral recommendation on Air
Products. The company, which competes with
Praxair Inc.
(
PX
), holds a short-term Zacks #3 Rank (Hold).
AIR PRODS & CHE (APD): Free Stock Analysis
Report
PRAXAIR INC (PX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment
Research