Air Products' AP-X® LNG Technology and Equipment Selected for First Phase of Massive Expansion Project in Qatar

Rhea-AI Summary

Air Products (NYSE: APD) has been awarded a contract to supply its proprietary AP-X® Natural Gas Liquefaction Process technology for the North Field East (NFE) Project in Qatar. This involves four LNG process units, each with a capacity of 7.8 million tonnes per year, slated to become operational in 2025. The project aims to maintain Qatar's status as the world's leading LNG producer. Air Products has a long-standing relationship with Qatar's LNG operations, having previously provided technology for all 14 existing LNG trains in the region.

Positive

• Awarded contract for North Field East Project, enhancing future revenue streams.
• Technology will produce LNG at a competitive scale, potentially increasing market share.
• Strengthens long-term relationship with Qatargas, ensuring continued business.

Negative

• Operational risks associated with project timelines leading to potential revenue delays.

LEHIGH VALLEY, Pa., Aug. 4, 2020 /PRNewswire/ -- Air Products (NYSE: APD), the world's leader in liquefied natural gas (LNG) technology and equipment, has been selected to provide its proprietary AP-X^® Natural Gas Liquefaction Process technology and equipment to Qatargas for the first phase of Qatar Petroleum's massive LNG production expansion project, commonly known as the North Field East (NFE) Project, in Ras Laffan, the State of Qatar. Each of the four new LNG process units, the largest LNG production trains in the world, will have a production capacity of 7.8 million tonnes per year.

When these mega LNG trains become operational in 2025 liquefying natural gas from Qatar's North Field, regarded as the largest offshore non-associated natural gas field in the world, Qatar will maintain its position as the world's number one LNG producer.

"The truest sign of a satisfied customer is one that comes back and places another order, and Air Products is both pleased and proud that our premier technology was selected again for the newest phase of this massive LNG expansion project in Qatar. Our AP-X liquefaction technology sets the standard for the industry and offers the largest LNG process trains in the world, satisfying our customer's desire to reduce capital cost per tonne of LNG produced via economy of scale. These immense AP-X units have a process production capacity that is 50 percent larger than any other LNG train in operation and positions Air Products well for any customer requiring larger LNG process trains," said Dr. Samir J. Serhan, chief operating officer at Air Products.

Air Products has supplied key equipment and technology for all of Qatar's 14 existing LNG trains operating in Ras Laffan, the first of which started production in 1996 using Air Products' AP-C3MR^TM LNG technology. These AP-C3MR LNG Process units were followed by six AP-X LNG Process units, which started up between 2009 and 2011. The Air Products equipment provided with the proprietary AP-X natural gas liquefaction technology includes main cryogenic heat exchangers (MCHEs), subcooling heat exchangers (SCHEs), and Rotoflow^® turbomachinery companders and nitrogen economizer cold boxes. Rotoflow is an equipment division of Air Products working with our LNG equipment and cycle experts to provide seamless product development and optimal liquefier performance for end users.

The proven AP-X process is an elegant solution that enables significantly higher LNG production without requiring individual equipment items to be significantly larger and provides an efficient and flexible operation over a wide range of production capacities.

Air Products will build the AP-X LNG heat exchangers at its Port Manatee, Florida manufacturing facility. Air Products opened its Port Manatee facility in January 2014 and completed a 60% expansion in October 2019 to meet the needs of the ever-growing LNG industry. In October 2018, a new LNG equipment test facility (ETF) was dedicated which will enable Air Products to improve the reliability and yield produced from its LNG equipment and design new equipment.

Air Products' proprietary LNG technology, vital to helping meet the world's increasing energy needs and desire for clean energy, processes and cryogenically liquefies valuable natural gas for consumer and industrial use. For over 50 years Air Products has manufactured LNG heat exchangers, which currently operate in over 100 LNG trains in 20 countries around the world. 

Typically, an LNG heat exchanger can be as large as over 15 feet (5 meters) in diameter and 180 feet (55 meters) long. A finished unit can weigh as much as 500 tons. Photos of Air Products' LNG technology can be downloaded for publication at http://prphotolibrary.airproducts.com/ImageViewer.aspx?q=LNG.

Air Products' LNG process technology and equipment is the heart of an LNG production plant. The technology, in place at some of the most remote locations around the world, takes natural gas and unlocks its value by liquefying it and making it possible to economically ship it. The LNG is eventually re-gasified for energy uses.

The majority of total worldwide LNG is produced with Air Products' technology. In support of the LNG industry, Air Products provides process technology and key equipment for the natural gas liquefaction process for large export plants, small and mid-sized LNG plants, floating LNG plants and LNG peak shavers. Upstream, Air Products provides both nitrogen and natural gas dehydration membrane systems for offshore platforms. Downstream, Air Products provides membrane nitrogen generators for LNG carriers and land-based membrane and cryogenic nitrogen systems for LNG import terminals and baseload LNG plants.

About Air Products 
Air Products (NYSE:APD) is a world-leading industrial gases company in operation for nearly 80 years. Focused on serving energy, environment and emerging markets, the Company provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemical, metals, electronics, manufacturing, and food and beverage. Air Products is also the global leader in the supply of liquefied natural gas process technology and equipment. The Company develops, engineers, builds, owns and operates some of the world's largest industrial gas projects, including gasification projects that sustainably convert abundant natural resources into syngas for the production of high-value power, fuels and chemicals.

The Company had fiscal 2019 sales of $8.9 billion from operations in 50 countries and has a current market capitalization of over $60 billion. More than 17,000 passionate, talented and committed employees from diverse backgrounds are driven by Air Products' higher purpose to create innovative solutions that benefit the environment, enhance sustainability and address the challenges facing customers, communities, and the world. For more information, visit airproducts.com or follow us on LinkedIn, Twitter, Facebook or Instagram.

About Rotoflow 
Rotoflow, an Air Products business, designs and manufactures turbomachinery for LNG, industrial gas, hydrocarbon, petrochemical, and energy markets. As a turbomachinery company with world-leading operating expertise, Rotoflow draws on decades of experience and operational know-how to design, build, and support mission-critical turbomachinery.

Rotoflow, one of the only OEMs both manufacturing and operating turbomachinery, provides total solutions, and with its global services team, offers complete support for all types of turbomachinery equipment and systems. For more information, visit www.rotoflow.com.

About Qatargas 
Qatargas is a unique global energy operator in terms of size, service and reliability. The Company operates 14 Liquefied Natural Gas (LNG) trains with a total annual production capacity of 77 million tonnes. This makes Qatargas the largest LNG producer in the world. Established in 1984, Qatargas develops, produces, and markets hydrocarbons from the world's largest non-associated natural gas field. In addition to producing LNG, Qatargas is also a leading exporter of natural gas, helium, condensate and associated products. Today, Qatargas continues to set the benchmark in the LNG industry as it safely and reliably supplies energy to customers all over the world.

NOTE: This release may contain forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's reasonable expectations and assumptions as of the date of this release regarding important risk factors. Actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors not anticipated by management, including risk factors described in the company's Form 10K for its fiscal year ended September 30, 2019.

 

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SOURCE Air Products

FAQ

What is Air Products' role in Qatar's North Field East Project?

Air Products has been selected to provide its AP-X® Natural Gas Liquefaction Process technology for the project's first phase.

When will the North Field East LNG production units become operational?

The LNG production units are expected to be operational in 2025.

What is the production capacity of each LNG unit provided by Air Products?

Each LNG unit has a production capacity of 7.8 million tonnes per year.

How does the AP-X technology benefit Air Products financially?

The AP-X technology allows for larger production scales, which can lower costs and improve revenue potential.

How has Air Products contributed to Qatar's LNG industry previously?

Air Products has supplied technology for all existing LNG trains in Qatar, starting from 1996.