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Released October 31, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Despite boasting a strong project backlog that includes several highly anticipated liquefied natural gas (LNG) projects, Chart Industries Incorporated (NYSE:GTLS) (Atlanta, Georgia), which provides engineered equipment to the clean-energy and industrial-gas markets, cut its full-year revenue outlook amid changes in customer schedules and designs, compounded by supply-chain delays, especially for major LNG projects. Industrial Info is tracking more than $34 billion worth of active and planned projects involving Chart's services in the U.S., including nearly $20 billion worth of plant-expansion projects.
Click on the image at right for a graph detailing active and planned projects featuring Chart, by the projects' parent companies.
Executives say 2023's revenue is now expected to total between $3.45 billion and $3.5 billion, a decline of 4% to 9% from the previous guidance, as projects such as Tellurian Incorporated's (Houston, Texas) Driftwood LNG face setbacks.
"Multiple LNG projects are underway, and we believe there is now consensus around the thought that the energy crisis is not over, as there continues to be geopolitical unrest returning high visibility to energy security and energy access," said Jill Evanko, the chief executive officer of Chart, in a recent quarterly earnings-related conference call. "The takeaway is that we anticipate big LNG orders and revenue each year for the foreseeable future. This is driven by expected LNG sanctioning, expanded sizes of projects, and the movement to modular midscale for international projects, many of which have already qualified our IPSMR process technology."
Chart's IPSMR technology uses a mixture of light hydrocarbons and nitrogen to create a single mixed refrigerant process that is rated as more efficient than its industry peers. IPSMR is a crucial component in Tellurian's Driftwood LNG export plant in Lake Charles, Louisiana, which is designed to produce up to 26 million metric tons per year of LNG from five trains. Each train would feature four liquefaction units, each of 1.3 million metric tons per year, and a pretreatment unit.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project and Plant databases can learn more from a detailed plant profile and can click here for a list of detailed reports on active and planned Driftwood projects.
But the Driftwood project has run into a series of delays, as Tellurian continues to seek customers to buy its LNG before making a final investment decision (FID). Earlier this month, Tellurian asked the U.S. Federal Energy Regulatory Commission (FERC) for another 36 months beyond the originally authorized in-service date to complete construction of the LNG plant and its natural gas pipeline. Under the revised schedule, Tellurian would have until 2029 to finish the project.
On the other hand, Cheniere Energy Incorporated (NYSE:LNG) (Houston) is more than one year into construction on its 10.5 million-ton-per-year Corpus Christi Stage 3 LNG Production Plant in Gregory, Texas, at the Port of Corpus Christi. Chart has booked more than $310 million worth of orders from the Stage 3 project for IPSMR and other technology. The expansion includes seven midscale trains, each with a liquefaction capacity of about 1.49 million tons per year. Subscribers can read more in a detailed project report.
Cheniere recently announced the expansion is running ahead of schedule. "Certain construction activities on Stage 3 are taking place ahead of plan, and I remain optimistic on schedule outperformance and potentially having more LNG volumes in 2025, and possibly the entire seven-train project complete by the end of 2026," said Jack Fusco, the chief executive officer of Cheniere, in the company's most recent quarterly earnings-related conference call.
Amid conflicting information from the LNG market, Evanko and other Chart executives pointed to other sectors where the company enjoyed strong recent results. "We did not book any big LNG [projects] in the third quarter and still had $1.13 billion of orders, resulting in record backlog of $4.14 billion," Evanko said, later adding: "We had significant growth above 30% in non-big LNG orders, as well as growth in total orders of 6%, even when considering the approximately $200 million big LNG orders booked in the second quarter."
One of Chart's biggest non-LNG customers is Plug Power Incorporated (NASDAQ:PLUG) (Latham, New York), which is working with Chart on two Power-to-X projects to produce hydrogen via renewable energy. Chart and Plug Power are almost two years into construction on a green hydrogen plant in Alabama, New York, which is expected to produce up to 80 metric tons per day when completed in 2025, and are considering an expansion at a green hydrogen plant in Kingsland, Georgia, which would double production to 30 metric tons per day. Subscribers can read detailed reports on the projects in New York and Georgia.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of detailed reports for active and planned projects involving Chart's services.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing active and planned projects featuring Chart, by the projects' parent companies.Executives say 2023's revenue is now expected to total between $3.45 billion and $3.5 billion, a decline of 4% to 9% from the previous guidance, as projects such as Tellurian Incorporated's (Houston, Texas) Driftwood LNG face setbacks.
"Multiple LNG projects are underway, and we believe there is now consensus around the thought that the energy crisis is not over, as there continues to be geopolitical unrest returning high visibility to energy security and energy access," said Jill Evanko, the chief executive officer of Chart, in a recent quarterly earnings-related conference call. "The takeaway is that we anticipate big LNG orders and revenue each year for the foreseeable future. This is driven by expected LNG sanctioning, expanded sizes of projects, and the movement to modular midscale for international projects, many of which have already qualified our IPSMR process technology."
Chart's IPSMR technology uses a mixture of light hydrocarbons and nitrogen to create a single mixed refrigerant process that is rated as more efficient than its industry peers. IPSMR is a crucial component in Tellurian's Driftwood LNG export plant in Lake Charles, Louisiana, which is designed to produce up to 26 million metric tons per year of LNG from five trains. Each train would feature four liquefaction units, each of 1.3 million metric tons per year, and a pretreatment unit.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project and Plant databases can learn more from a detailed plant profile and can click here for a list of detailed reports on active and planned Driftwood projects.
But the Driftwood project has run into a series of delays, as Tellurian continues to seek customers to buy its LNG before making a final investment decision (FID). Earlier this month, Tellurian asked the U.S. Federal Energy Regulatory Commission (FERC) for another 36 months beyond the originally authorized in-service date to complete construction of the LNG plant and its natural gas pipeline. Under the revised schedule, Tellurian would have until 2029 to finish the project.
On the other hand, Cheniere Energy Incorporated (NYSE:LNG) (Houston) is more than one year into construction on its 10.5 million-ton-per-year Corpus Christi Stage 3 LNG Production Plant in Gregory, Texas, at the Port of Corpus Christi. Chart has booked more than $310 million worth of orders from the Stage 3 project for IPSMR and other technology. The expansion includes seven midscale trains, each with a liquefaction capacity of about 1.49 million tons per year. Subscribers can read more in a detailed project report.
Cheniere recently announced the expansion is running ahead of schedule. "Certain construction activities on Stage 3 are taking place ahead of plan, and I remain optimistic on schedule outperformance and potentially having more LNG volumes in 2025, and possibly the entire seven-train project complete by the end of 2026," said Jack Fusco, the chief executive officer of Cheniere, in the company's most recent quarterly earnings-related conference call.
Amid conflicting information from the LNG market, Evanko and other Chart executives pointed to other sectors where the company enjoyed strong recent results. "We did not book any big LNG [projects] in the third quarter and still had $1.13 billion of orders, resulting in record backlog of $4.14 billion," Evanko said, later adding: "We had significant growth above 30% in non-big LNG orders, as well as growth in total orders of 6%, even when considering the approximately $200 million big LNG orders booked in the second quarter."
One of Chart's biggest non-LNG customers is Plug Power Incorporated (NASDAQ:PLUG) (Latham, New York), which is working with Chart on two Power-to-X projects to produce hydrogen via renewable energy. Chart and Plug Power are almost two years into construction on a green hydrogen plant in Alabama, New York, which is expected to produce up to 80 metric tons per day when completed in 2025, and are considering an expansion at a green hydrogen plant in Kingsland, Georgia, which would double production to 30 metric tons per day. Subscribers can read detailed reports on the projects in New York and Georgia.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of detailed reports for active and planned projects involving Chart's services.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
