Alliance combines modular equipment offerings from Honeywell UOP, with technology, engineering and project implementation services from Black & Veatch to lower customer costs, and improve flexibility and speed to market for LNG production
DES PLAINES, Ill., Sept. 24, 2013 � UOP LLC, a Honeywell (NYSE: HON) company, announced today that it has formed an alliance with Black & Veatch, a leading global engineering, consulting and construction company, to help natural gas producers and fuel providers meet growing demand for liquefied natural gas (LNG) as a transportation fuel and for off-road, high-horsepower applications.
Through the alliance, the two companies will offer integrated, small-scale LNG plants capable of processing between 50,000 and 500,000 gallons of LNG per day per single processing train, with the capability to extend capacity. LNG can be sold as transportation fuel or used instead of traditional diesel in high-fuel consumption, high-horsepower railroad, marine and mining applications and oil and gas exploration and production.
"LNG use is growing in the North American transportation and high-horse power sectors because of its low cost and environmental benefits, coupled with the rapid introduction of affordable natural gas engine and infrastructure technology," said Rebecca Liebert, senior vice president and general manager for Honeywell UOP's Gas Processing and Hydrogen business unit. "Starting this year, this alliance will help deliver fast, economical, efficient and reliable LNG plants to help meet growing demands in North America."
"UOP Russell offers the industry's leading modularized gas processing equipment," said John George, vice president and oil& gas manager of Black & Veatch. "UOP and Black & Veatch's combined strengths will increase LNG plant speed to market to meet clients' needs."
U.S. natural gas production is expected to increase more than 40 percent over the next 30 years, and use of natural gas as a road transportation fuel is expected to nearly double from current levels by 2018, according to the International Energy Agency. At the same time, users of off-road, high-horsepower equipment are increasingly turning to LNG to replace diesel, both to cut fuel costs and reduce emissions.
The agreement between Honeywell UOP and Black& Veatch provides a one-stop solution for proven design, procurement, construction and fabrication solutions for small-scale LNG plants in North America. The alliance combines UOP's process technology expertise and its UOP Russell modularized equipment offerings; Honeywell's world-leading controls and automation solutions; and Black & Veatch's engineering, procurement and construction (EPC) services, and its proven PRICO® natural gas liquefaction technology. The complete small-scale LNG plant offering will be available in 2013.
The UOP Russell product line includes modularized packaged plants that enable shale and conventional natural gas producers to remove contaminants from natural gas and recover high-value natural gas liquids used for petrochemicals and fuels. UOP Russell modular equipment is factory-built to maintain tight quality control standards and significantly reduce construction time and costs.
PRICO® technology by Black& Veatch is an innovative process to liquefy natural gas, making it available for transport via truck, rail and marine vessel. The process uses a patented, single-mixed refrigerant loop for natural gas liquefaction. PRICO® offers a simplified refrigeration system that requires minimal equipment, enables simplified control and maintenance, and offers flexibility in feed gas composition, allowing low capital and operating expenditures.
UOP Russell is part of Honeywell UOP's Gas Processing and Hydrogen business, which offers technology, equipment and materials to treat and process natural gas as well as to purify hydrogen used in refineries. Honeywell UOP also offers world-leading solutions to upgrade recovered natural gas liquids to high-value petrochemicals. Read more about Honeywell UOP's gas processing technologies at www.uop.com/gasprocessing. Black& Veatch is an employee-owned, global leader in building Critical Human Infrastructure™ in Energy, Water, Telecommunications and Government Services. Since 1915, it has helped improve the lives of people in more than 100 countries through consulting, engineering, construction, operations and program management. Learn more at www.bv.com.
UOP LLC, headquartered in Des Plaines, Illinois is a leading international supplier and licensor of process technology, catalysts, adsorbents, process plants, and consulting services to the petroleum refining, petrochemical, and gas processing industries. UOP is a wholly-owned subsidiary of Honeywell International, Inc. and is part of Honeywell's Performance Materials and Technologies strategic business group. For more information, go towww.uop.com.
Honeywell (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; turbochargers; and performance materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London, and Chicago Stock Exchanges. For more news and information on Honeywell, please visit www.honeywellnow.com.
This release contains certain statements that may be deemed "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. We identify the principal risks and uncertainties that affect our performance in our Form 10-K and other filings with the Securities and Exchange Commission.
Contact: John Simley (847) 391-2278 John.Simley@honeywell.com