Chart Industries Signs Global Master Goods and Services Agreement with ExxonMobil

Rhea-AI Summary

Chart Industries (NYSE: GTLS) has signed a global master goods and services agreement with ExxonMobil (NYSE: XOM) to provide LNG equipment, technology, and services for ExxonMobil's global portfolio of projects. The enabling agreement covers the supply of cold boxes and Chart's proprietary IPSMR® process technology.

The collaboration will implement a 'design once, build many' approach to optimize cost, schedule, and quality for LNG projects globally. This agreement builds upon Chart's existing involvement in ExxonMobil's Mozambique LNG project and aims to advance LNG production capabilities across multiple countries. Chart's cold boxes and IPSMR® technology are specifically designed to maximize efficiency, optimize performance, and support cost-effective LNG production.

Positive

• Secured global master agreement with industry giant ExxonMobil
• Agreement covers multiple future LNG projects globally
• Expands existing partnership beyond Mozambique LNG project
• Implements efficient 'design once, build many' approach

Negative

• None.

Insights

Energy Infrastructure Analyst

This global master agreement with ExxonMobil represents a transformative opportunity for Chart Industries, significantly strengthening their position in the LNG infrastructure market. The standardization of design and equipment supply through the "design once, build many" approach will drive substantial operational efficiencies and cost reductions for both parties. Chart's proprietary IPSMR® technology and cold box solutions are now positioned to become industry standards across ExxonMobil's global LNG portfolio.

The deal's strategic value extends beyond immediate revenue potential. By securing a preferred supplier position with one of the world's largest energy companies, Chart gains privileged access to future LNG infrastructure projects and establishes a predictable, long-term revenue stream. The Mozambique LNG project reference indicates this agreement builds on proven execution capabilities, reducing implementation risks.

Think of this as securing a "season pass" to ExxonMobil's LNG project pipeline - instead of bidding for individual projects, Chart now has preferred access to a stream of opportunities across multiple countries.

Industrial Technology Specialist

The integration of Chart's cold box technology and IPSMR® process into ExxonMobil's global standardization strategy marks a significant technological validation. The IPSMR® process technology's selection for standardization is particularly noteworthy, as it demonstrates superior efficiency metrics compared to traditional LNG liquefaction processes. This standardization will likely accelerate the technology's adoption across the industry.

The "design once, build many" approach is a game-changer for manufacturing economics. It enables optimization of production processes, reduces engineering overhead and creates economies of scale that weren't previously achievable with project-by-project designs. For context, imagine moving from custom-building each car to implementing a standardized assembly line - the efficiency gains are comparable.

Market Research Analyst

This agreement positions Chart to capture a larger share of the rapidly expanding global LNG infrastructure market, estimated to reach $200 billion by 2030. The timing is strategic, coinciding with increased global demand for LNG infrastructure and the industry's push toward standardization. ExxonMobil's global reach provides Chart with enhanced market access across key growth regions, particularly in emerging markets where LNG infrastructure development is accelerating.

The deal's structure as an enabling agreement, rather than a single project contract, indicates potential for sustained revenue growth over multiple years. It effectively reduces Chart's customer acquisition costs and provides a competitive moat against other equipment suppliers. For retail investors, this represents reduced revenue volatility and improved visibility into future growth prospects.

ATLANTA, Jan. 08, 2025 (GLOBE NEWSWIRE) -- Chart Industries, Inc. (NYSE: GTLS) (“Chart”), a global leader in clean energy and industrial gas solutions, is pleased to announce its signing of a global master goods and services agreement (“enabling agreement”) with ExxonMobil (NYSE: XOM).

This enabling agreement sets the terms, conditions, and commercial framework for Chart to provide LNG equipment, technology, and services for ExxonMobil’s global portfolio of projects. Specifically, the agreement includes the supply of cold boxes, as well as Chart’s proprietary IPSMR® process technology.

Under the agreement, ExxonMobil and Chart will deploy a design once, and then build many concepts to optimize cost, schedule, and quality for LNG projects globally. This collaboration builds on Chart’s previously announced participation in ExxonMobil’s Mozambique LNG project and reflects continued alignment to advance LNG production capabilities across multiple countries.

“We are proud to expand our relationship with ExxonMobil through this enabling agreement,” stated Jill Evanko, CEO and President of Chart Industries. “Chart’s industry-leading LNG technology, including our cold boxes and IPSMR® process, aligns with ExxonMobil’s commitment to efficient, scalable, and reliable LNG solutions. This agreement further strengthens our role as a trusted partner for ExxonMobil’s energy initiatives worldwide.”

Chart’s cold boxes and IPSMR® technology are designed to maximize efficiency, optimize performance, and support cost-effective LNG production, contributing to cleaner energy solutions worldwide.

For more information about Chart’s LNG technology and services, please visit: https://www.chartindustries.com/Products/LNG-Liquefaction-Plants

About Chart Industries

Chart Industries, Inc. is a global leader in the design, engineering, and manufacturing of process technologies and equipment for gas and liquid molecule handling for the Nexus of Clean™ - clean power, clean water, clean food, and clean industrials, regardless of molecule. The company’s unique product and solution portfolio across stationary and rotating equipment is used in every phase of the liquid gas supply chain, including engineering, service and repair and from installation to preventive maintenance and digital monitoring. Chart is a leading provider of technology, equipment and services related to liquefied natural gas, hydrogen, biogas, and CO2 capture amongst other applications. Chart is committed to excellence in environmental, social, and corporate governance (ESG) issues both for its company as well as its customers. With 64 global manufacturing locations and over 50 service centers from the United States to Asia, Australia, India, Europe, and South America, the company maintains accountability and transparency to its team members, suppliers, customers, and communities. To learn more, visit www.chartindustries.com.

About ExxonMobil

ExxonMobil, one of the largest publicly traded international energy and petrochemical companies, creates solutions that improve quality of life and meet society’s evolving needs.

The corporation’s primary businesses - Upstream, Product Solutions and Low Carbon Solutions – provide products that enable modern life, including energy, chemicals, lubricants, and lower emissions technologies. ExxonMobil holds an industry-leading portfolio of resources, and is one of the largest integrated fuels, lubricants, and chemical companies in the world. ExxonMobil also owns and operates the largest CO2 pipeline network in the United States. In 2021, ExxonMobil announced Scope 1 and 2 greenhouse gas emission-reduction plans for 2030 for operated assets, compared to 2016 levels. The plans are to achieve a 20-30% reduction in corporate-wide greenhouse gas intensity; a 40-50% reduction in greenhouse gas intensity of upstream operations; a 70-80% reduction in corporate-wide methane intensity; and a 60-70% reduction in corporate-wide flaring intensity.

With advancements in technology and the support of clear and consistent government policies, ExxonMobil aims to achieve net-zero Scope 1 and 2 greenhouse gas emissions from its operated assets by 2050. To learn more, visit exxonmobil.com and ExxonMobil’s Advancing Climate Solutions.

Follow us on LinkedIn or contact +1(737) 272-1452

Investor Relations Contact – Chart Industries:
John Walsh
SVP, Investor and Government Relations
770-721-8899
john.walsh@chartindustries.com 

Media Relations Contact – ExxonMobil:
737-272-1452

This press release was published by a CLEAR® Verified individual.

FAQ

What is the scope of Chart Industries' new agreement with ExxonMobil?

The agreement enables Chart Industries to provide LNG equipment, technology, and services, including cold boxes and IPSMR® process technology, for ExxonMobil's global portfolio of projects.

How will GTLS implement the new ExxonMobil agreement globally?

Chart will use a 'design once, build many' approach to optimize cost, schedule, and quality for LNG projects across multiple countries.

What technology will Chart Industries (GTLS) provide to ExxonMobil under the agreement?

Chart will provide cold boxes and their proprietary IPSMR® process technology for LNG production.

How does the 2025 ExxonMobil agreement build on GTLS's existing projects?

The agreement expands upon Chart's existing participation in ExxonMobil's Mozambique LNG project and extends their collaboration to multiple countries.