Air Products' LNG Technology Selected for Nigeria LNG Train 7 Project

Rhea-AI Summary

Air Products (NYSE:APD) has secured an agreement with SCD JV S.c.a.r.l to provide main cryogenic heat exchangers and process technology for the Nigeria LNG Train 7 project, aiming to produce 8 million tons of LNG annually. This marks a continuation of a 20-year relationship with NLNG, demonstrating Air Products' strong market position and reliability. Manufacturing will occur at its Port Manatee facility in Florida, with delivery expected in 2023. Air Products' technology is crucial for global LNG production, underpinning operations in over 100 LNG trains across 20 countries.

Positive

• Air Products has secured a key contract for Nigeria LNG Train 7, reinforcing its strong market presence.
• The project will enhance LNG production capacity by 8 million tons per annum.
• Air Products has a long-standing relationship with NLNG, highlighting customer loyalty and trust in its technology.
• Manufacturing of critical equipment will occur in Florida, potentially boosting local employment.

Negative

• None.

LEHIGH VALLEY, Pa., Aug. 2, 2021 /PRNewswire/ -- Air Products (NYSE:APD), the world's leader in liquefied natural gas (LNG) technology and equipment, has signed an agreement with SCD JV S.c.a.r.l, a joint venture of Saipem, Chiyoda and Daewoo, for the Nigeria LNG (NLNG) Train 7 project. The project includes one complete LNG train and one combined liquefaction unit. Air Products will provide the main cryogenic heat exchangers (MCHEs) and the process technology for both liquefaction units. Air Products will supply this technology and proprietary processes to the JV for the production of eight million tons per annum of LNG in Nigeria for a major LNG production expansion at NLNG's existing NLNG Bonny Island facility.

Air Products previously provided the MCHEs and process technology for the first six trains for NLNG at Bonny Island with initial onstream LNG production from the units beginning in 1999 for the first, to 2007 for the sixth. All six LNG trains continue production today.

"Air Products prides itself on product quality and excellent customer service. Our relationship with NLNG points just to that, as we have an established and thriving business relationship spanning over two decades. We are very proud that the original six heat exchangers we built continue operating and that the Train 7 expansion will utilize two additional Air Products' heat exchangers with delivery targeted for 2023. Every customer is an important one, but returning customers tell you a lot about how you are operating as a business, and how your technology is viewed by the marketplace," said Dr. Samir J. Serhan, chief operating officer at Air Products.

Air Products will build the 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, Air Products dedicated a new LNG equipment test facility (ETF), which will enable Air Products to improve the reliability and yield produced from its LNG equipment and to 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 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; carbon capture projects; and world-scale carbon-free hydrogen projects supporting global transportation and the energy transition.

The Company had fiscal 2020 sales of $8.9 billion from operations in 50 countries and has a current market capitalization of approximately $65 billion. More than 19,000 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. 

Cautionary Note Regarding Forward-Looking Statements: This release contains "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 expectations and assumptions as of the date of this release and are not guarantees of future performance.  While forward-looking statements are made in good faith and based on assumptions, expectations and projections that management believes are reasonable based on currently available information, actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors, including risk factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020.  Except as required by law, we disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in the assumptions, beliefs or expectations or any change in events, conditions or circumstances upon which any such forward-looking statements are based.

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SOURCE Air Products

FAQ

What is the significance of Air Products' contract for Nigeria LNG Train 7?

The contract will enable Air Products to provide technology and equipment for an additional 8 million tons of LNG production annually, enhancing its position in the LNG market.

When is the expected delivery for the LNG heat exchangers for Train 7?

Delivery of the heat exchangers is targeted for 2023.

How long has Air Products been involved with Nigeria LNG?

Air Products has had a relationship with Nigeria LNG spanning over two decades, having previously supplied technology for the first six trains.

What impact does the Nigeria LNG Train 7 project have on Air Products' operations?

The project reinforces Air Products' leadership in LNG technology and may bolster its revenues through increased production capabilities.