Honeywell at Work on $17.8 Billion in Projects Under Construction, Led by LNG Export, Natural Gas Plants

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Researched by Industrial Info Resources (Sugar Land, Texas)--Multinational conglomerate Honeywell International (NYSE:HON) (Morris Plains, New Jersey), which specializes partly in engineering and automation, has a strong and growing backlog in two of the hottest segments of the U.S. energy market: natural gas processing and liquefied natural gas (LNG) exports. Industrial Info is tracking $31.4 billion in active projects involving Honeywell, including more than $17.8 billion under construction.

Sales grew 3.2% from the third quarter of 2016 to $10.12 billion, while net income grew 9.4% to $1.37 billion. Darius Adamczyk, the chief executive officer of Honeywell, lauded a "standout quarter" for the company, noting that the aerospace aftermarket business grew more than 7%, the warehouse automation business grew at a double-digit pace, and a 25% organic sales growth in UOP bolstered the Performance Materials and Technologies business.

Honeywell is providing instrumentation, controls and safety services for one of the projects that is expected to put the U.S. at the head of the pack for LNG exports: ConocoPhillips' (NYSE:COP) (Houston, Texas) Freeport LNG Liquefaction and Export Plant in Quintana, Texas. Three production trains are under construction, each of which will source 650 million standard cubic feet per day of natural gas from the Eagle Ford Shale to produce 4.6 million tons per year of LNG.

Tolling agreements have been signed for with Osaka Gas and Chubu Electric for the $5.5 billion first train; BP plc (NYSE:BP) (London, England) for the $5.5 billion second train; and Toshiba Corporation (Tokyo, Japan) and SK E&S (Seoul, South Korea) for the $4.5 billion third train. Earlier this month, BP announced it had six LNG carriers on order from Daewoo Shipbuilding & Marine Engineering (Seoul) for the second train. For more information, see Industrial Info's project reports on Train 1, Train 2 and Train 3.

Also at Freeport, Honeywell is at work on a $200 million natural gas pretreatment plant and a $90 million natural gas-fired unit addition. The pretreatment plant will send 2.2 billion cubic feet per day of natural gas to the LNG complex via pipeline, while the natural gas-fired unit will use a simple-cycle turbine to provide the complex with 87 megawatts (MW) of power. For more information, see Industrial Info's project reports on the pretreatment plant and the natural gas-fired unit.

Honeywell's UOP Russell subsidiary is the technology provider for several natural gas-processing plant projects across the U.S., including Vaquero Midstream's (The Woodlands, Texas) $150 million second processing unit its Caymus Cryogenic Sour Natural Gas Processing Plant in Coyanosa, Texas. Like the first unit, which was placed into service in August 2016, it will process 200 million standard cubic feet per day from the Avalon, Wolfcamp and Bone Spring shale formations in the Permian's Delaware Basin. For more information, see Industrial Info's project report.

Two other projects under construction in bordering states have UOP Russell onboard: Lucid Energy Group LLC's (Dallas, Texas) $150 million Roadrunner Cryogenic Natural Gas Processing Plant in Loving, New Mexico, which would process 200 million standard cubic feet per day from the Delaware Basin into natural gas liquid (NGL), and Canyon Midstream Partners LLC's (Houston, Texas) $30 million Redcliff Natural Gas Processing Plant near Mutual, Oklahoma, which would process 200 million standard cubic feet per day using UOP's Modular Cryogenic Unit. For more information, see Industrial Info's reports on the Roadrunner and Redcliff projects.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.