Honeywell UOP To Form Alliance To Serve Growing Demand For Liquefied Natural Gas As A Transportation Fuel

DES PLAINES, IL--Sept. 24, 2013: UOP LLC, a Honeywell 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.