LNG

Chart Industries Inc., the liquefied natural gas equipment-maker and industrial gas technology company, has sold a low-pressure compression and vacuum technologies company for $300 million in cash to the US group Ingersoll Rand.

Chart said the transaction, which is subject to customary closing conditions, was expected to be completed in the third quarter.

As part of the transaction, Ingersoll Rand will assume ownership of the Roots manufacturing facility in Connersville, Indiana, which is dedicated to Roots products and will retain the 300 employees at Roots.

“We are excited to have executed a definitive agreement in the second quarter 2023 to sell Roots, which is another key step in accelerating our deleveraging plan while simultaneously allowing us to focus on our core strategic solution offering and integration efforts,” stated Jill Evanko, Chart’s Chief Executive and President.

“We also are thrilled that the business will be owned by Ingersoll Rand, a proven strategic partner and a company that will care for the Roots’ team members,” added Evanko.

Vicente Reynal, Chairman and Chief Executive of Ingersoll Rand, said he was pleased with the acquisition.

Benefits

“We have long admired Roots and are thrilled to add this iconic brand to our portfolio. This complementary acquisition expands our low-pressure compression and vacuum product offerings and is a great example of our partnership with Chart, where the acquisition was a win-win for both companies,” added Reynal.

Chart is also reiterating its full year 2023 anticipated outlook for revenue, adjusted gross earnings, adjusted earnings per share, free cash flow and operational cash flow available for debt paydown.

The company reported in May that first-quarter results were helped by LNG orders and additions from Chart’s acquisition of UK group Howden.

Chart’s first-quarter included strong starts for Chart and Howden with orders amounting to $747.7m, contributing to a record $3.9 billion backlog.

Additionally, Chart booked a “Big LNG” order from leading global liquefaction plant builder Bechtel for air-cooled heat exchangers, brazed aluminum heat exchangers and ethylene storage tanks for Sempra Infrastructure’s Port Arthur LNG project.

The company also listed an order for $115M for the IPSMR® liquefaction systems from the Chinese shipyard Wison Heavy Industry Co. for small-scale LNG projects all driven by Chart’s IPSMR® technology, including one for Italian oil and gas major and LNG project developer ENI.

A separate order was also made for brazed aluminum heat exchangers for a floating LNG application for $19.5M.

Chart said quarterly small-scale and floating LNG orders totalled $139M, which was a 263 percent increase for these types of orders when compared to the first quarter of 2022. 

Chart Industries, the leading US equipment-maker for LNG and industrial and new energy projects, has signed a memorandum of understanding to supply liquefaction process technology, associated equipment as well as a series of fuelling stations for another US company.

Chart said its deal was with BNG Clean Fuel Corp., a private company focused on the delivery of scalable infrastructure solutions for the production, storage, and delivery of hydrogen fuel to the power, marine, rail, oil and gas, mining and transportation industries,.

“Additionally, the companies will collaborate to develop further industry relationships with customers in the end-use industries described above to utilize BNG’s ‘hub, spoke and wheel model’ facilities for hydrogen production, virtual pipeline networks, bulk cargo shipping, and fuel dispensing stations.

Chart said that while no orders had been booked relating to this MOU or project, they are anticipated to be booked in 2023 and 2024 for both the equipment and process technology scope.

BNG is focused on its their Denver H2 pilot hub with dual-22 ton per day capacity hydrogen liquefaction facilities, a centrally located storage terminal, 10 liquid hydrogen stations, tankers and mobile fuelling equipment which will be provided by Chart.

“BNG is taking a pragmatic approach to scaling of the hydrogen economy, with a focus on the hub and spoke model starting in North America,” stated Jill Evanko, Chart’s Chief Executive and President.

“This MOU brings Chart’s extensive technology and equipment experience to the project. We look forward to supporting BNG’s endeavours to deliver another option to the hydrogen end-use market,” it added.

Eliot Barton, CEO of BNG Clean Fuel which is a privately held Delaware Corporation based in Aurora, said he was pleased with the deal.

“In partnering with Chart Industries, BNG has aligned with a recognized global leader in the manufacturing of the highest-quality equipment in the industry,” said Barton.

“This relationship will help solidify our capitalization efforts and attract additional key partners to ensure the success of our first hydrogen hub and rapidly develop other planned regional markets,” he added.

Dec 9 (LNGJ) - Chart Industries, the US LNG and industrial gas equipment-maker, continued its series of debt and share offerings to fund the previously announced acquisition of UK engineering firm Howden. Chart priced its offering of $1.46 billion of 7.500-percent senior secured notes due 2030 at an issue price of 98.661 percent and $510 million of 9.500-percent unsecured notes due in 2031 at an issue price of 97.949 percent.

   Chart said the offering was expected to close on December 22, 2022, subject to customary closing conditions. “The Notes will be fully and unconditionally guaranteed, jointly and severally, by each of Chart’s wholly owned domestic subsidiaries that guarantee its senior secured credit facilities,” said the Atlanta, Georgia-based company.

Chart Industries Inc., the liquefied natural gas equipment-maker and industrial gas technology company, reported first-quarter 2022 all-time record orders of $636.8 million, its fourth record-order quarter out of the past five quarters.

Chart Industries, the US maker of equipment for LNG and industrial gases facilities, has received a full notice to proceed (FNTP) for the production of cold boxes and brazed aluminum heat exchangers for Venture Global’s Plaquemines LNG export plant on west bank of the Mississippi River.

The Chart equipment will be for the first phase of the venture with production of 10 million tonnes per annum.

“In conjunction with the FNTP, Chart booked the full equipment order of $136 million for the Plaquemines project from Baker Hughes,” said Chart.

“Chart will begin recognizing revenue on this project in 2022 with a multi-year staggered delivery schedule,” explained Atlanta, Georgia-based Chart.

Chart is benefiting from the LNG boom on the US Gulf Coast and after supplying equipment for the Plaquemines plant, it has also been contracted as a supplier for Cheniere Energy’s Corpus Christi plant expansion and for Tellurian’s Driftwood LNG project.

The Plaquemines project is under preliminary site preparation on the river bank 30 miles south of New Orleans.

First phase production will comprise nine modular blocks with the 10 MTPA of output eventually followed by nine additional block for 20 MTPA in total.

Funding

Venture Global had already raised $500 million of funding in transactions arranged by American and Japanese banks to finance construction activities at Plaquemines.

The Arlington, Virginia-based company previously closed a term-loan involving JPMorgan Chase Bank, Morgan Stanley Senior Funding, Bank of America and Japan’s third-largest banking group, Mizuho Bank.

Venture Global is currently developing 70 MTPA in four projects in Louisiana.

The most advanced plant in terms of construction is Calcasieu Pass in Cameron Parish in Louisiana, south of Lake Charles, with 10 MTPA of capacity and which was shipped its first cargo on March 1.

The other three projects are expected to each produce around 20 MTPA of LNG.

In addition to the Plaquemines and Calcasieu Pass developments, Venture Global is planning two other plants, Delta LNG on the Mississippi and CP2 LNG, which would be built on a 540-acre site in Cameron Parish, adjacent to the Calcasieu Pass facility.

Chart Industries, the US maker of LNG and industrial gases equipment for the energy transition, reported record fourth-quarter and annual orders and is poised to deliver for three major LNG export projects likely to proceed in 2022 on the US Gulf Coast.

Chart Industries, the US maker of LNG and industrial gases equipment for the energy transition, has just been awarded four liquefaction project orders from four different customers.

Chart said the orders for the smaller scale sector were worth more than $120 million.

Additionally, the Atlanta, Georgia-based company has received releases on engineering work, amounting to limited notice to proceed, on two of the “Big LNG” export plant projects which are expected to proceed to final investment decision in 2022.

Highlights of the four liquefaction project awards include a hydrogen liquefier.

The 15-ton-per-day liquefier will be built in North America with a new hydrogen liquefaction customer.

“This is our fourth hydrogen-helium liquefaction order of the year in 2021 and with those four orders totalling approximately $150M, covering three different geographies and three different customers,” Chart explained.

Liquefaction

The orders also include a 60,000-ton BioLNG liquefaction train and associated equipment.

Chart added that the third order is for a BioLNG facility and associated station infrastructure for 20 BioLNG stations with an established European customer, Verbio.

The fourth order is for a utility-scale LNG liquefaction plant which is an integrated facility and the first in the nation with a hybrid (gas-electric) drive and for a customer in the Northeast US.

Chart added that this customer plans to utilize both natural gas and renewable natural gas (RNG) in this long-duration energy storage solution meeting reliability and environmental targets.

“We are pleased that our hydrogen and LNG liquefaction process technology and equipment capabilities are recognized and utilized globally and across industries,” stated Jill Evanko, Chart’s Chief Executive and President.

“We view this past week’s awards and overall continued broad-based demand as strong indicators that the energy transition is accelerating,” added Evanko.

“These orders give further support to our previously announced 2022 outlook,” stated the CEO. 

Chart Industries, the US manufacturer of LNG liquefaction, storage and other cryogenic equipment serving the energy and industrial gas markets, has signed an accord with Canada-headquartered Ionada to pursue carbon-capture and sequestration (CCS) projects for the maritime and power sectors.

Ionada is a developer of exhaust-gas cleaning systems that reduce emissions in shipping and power plants. The accord with Chart will bring together Ionada’s technology and Chart’s expertise in carbon-dioxide storage and handling systems.

Atlanta, Georgia-based Chart is also a market leader in supplying US Gulf Coast large-scale LNG export projects, including Venture Global’s Plaquemines plant on the banks of the Mississippi River, Cheniere Energy’s Corpus Christi expansion in Texas and Tellurian’s Driftwood venture in Louisiana.

The company is also developing New York-based New Fortress Energy’s FastLNG production plans, while demand for Chart’s LNG vehicle tanks, fuelling stations and trailers has increased worldwide.

In moving into the CCS sector Chart and Ionada envisage making use of the US company’s onboard storage capabilities via its CO2 ISO containers or in engineered built-for-purpose type-C tanks and with the CO2 then offloaded at ports.

“Once offloaded, the CO2 can either be permanently stored in geological formations or put to beneficial use in CO2-consuming industries, such as the agricultural, industrial, energy or food and beverage sectors,” the companies explained.

“We are thrilled to partner with Ionada to help improve the carbon footprint of the shipping industry,” said Chart Chief Executive Jill Evanko.

“The solutions being developed with Ionada will greatly benefit the maritime sector and help ship owners reach greenhouse-gas emission targets set forth by the International Maritime Organization,” added Evanko.

“This is also a great example of how our equipment is agnostic to the process itself - it can work with various process solutions to offer the most flexibility to our end customers,” stated the Chart CEO.

The IMO aims to reduce carbon intensity in international shipping by 40 percent by 2030, and to cut the total annual GHG emissions from international shipping by at least 50 percent by 2050 compared to 2008.

With cryogenic storage tank manufacturing sites all around the world, including the US, China, the Czech Republic, Italy and India, Chart said it was well positioned to supply CO2 storage and handling solutions to shipowners globally.

US industrial gases equipment-maker and technology provider Chart Industries, whose products last year alone helped produce over 45 million tonnes of LNG to replace coal-fired power outside the US, was named “Emissions Reductions Champion Organization of the Year” at the three-day Gastech 2021 in-person trade show and exhibition that opened in Dubai in the United Arab Emirates.

Chart Industries, the US supplier of LNG equipment and developer of clean energy pathways, has posted its third consecutive quarter of record orders, taking the backlog to more than $1 billion.