In a press statement, Honeywell said it “will be able to offer customers a comprehensive, top-tier solution for their energy transformation journey”
US-based technology firm Honeywell has agreed to acquire the LNG process technology and equipment business from industrial gases supplier Air Products for $1.81 billion.
In a press statement, Honeywell said it “will be able to offer customers a comprehensive, top-tier solution for their energy transformation journey”.
The equipment will carry out natural gas pre-treatment and liquefaction using digital automation technologies.
Honeywell already provides pre-treatment solutions to LNG customers, and the Air Product LNG process technology and equipment business will be complementary to existing services including the manufacturing of coil-wound heat exchangers (CWHE) and related equipment, according to the statement.
Vimal Kapur, chairman and CEO of Honeywell, said that while “the world continues to build the renewables-based energy infrastructure of the future, natural gas is a critical lower-emission and affordable transition fuel”.
He added that the “highly complementary acquisition will further strengthen our energy transition portfolio”.
Air Products’ CWHE technology will be immediately expand “our installed base, creating new opportunities to compound growth in aftermarket services and digitalisation through our Honeywell Forge platform”, he said.
The global LNG market has grown in the two years following Russia’s invasion of Ukraine, with the US being an important source of the liquefied gas. It was the world’s biggest exporter of LNG in 2023, overtaking Qatar and Australia.
As per US Government data, the US exported 8.6 million tonnes (mt) of LNG from its terminals in December last year.
The data showed that Qatar was the biggest exporter of LNG in 2022, with Australia coming in second. The US Energy Information Administration (EIA) forecasts that LNG exports will rise by a further 2% this year.
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