Honeywell's $28.7 Billion in Active Projects Led by Growth in Natural Gas Processing, LNG Exports

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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, is among the service providers that have found plenty of business in the promising export market for U.S. liquefied natural gas (LNG). Industrial Info is tracking about $28.7 billion in active projects involving Honeywell, the vast majority of which are in the natural gas processing industry. Nearly $16 billion worth in the U.S. have reached advanced engineering or construction phases.

Honeywell's biggest project, by far, is ConocoPhillips (NYSE:COP) (Houston, Texas) Freeport LNG Liquefaction and Export Plant in Quintana, Texas, one of the country's most anticipated liquefied natural gas (LNG) export projects. Three production trains are under construction at the facility, 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: the $5.5 billion first train, the $5.5 billion second train and $4.5 billion third train, for which Honeywell is providing services for the instrumentation, controls and safety.

Last month, the U.S. Department of Commerce permitted China to negotiate long-term contracts that would allow it to source LNG from U.S. suppliers--a move that is expected to be a boon to LNG exporters for years to come. Cheniere Energy Incorporated's (NYSE:LNG) (Houston, Texas) Sabine Pass facility is the only LNG export terminal currently operational, but ConocoPhillips expects the first train at Freeport to be operational in the second half of 2018, with the second and third trains going online in early and late 2019. A $4.5 billion fourth train with similar capacity has been proposed, with Honeywell performing the same services; but if approved, it would not begin production until 2021 at the earliest. For more information, see Industrial Info's project reports on Train 1, Train 2, Train 3 and the proposed Train 4.

Honeywell is performing similar services for another LNG export facility that has been proposed for Texas: the Texas LNG liquefaction and export facility in Brownsville, which comprises a $1.5 billion first train, a $1.5 billion second train and a $50 million pre-treatment unit. Each train is designed to convert 275 million standard cubic feet per day of natural gas into 2 million metric tons per year, with the pre-treatment plant processing 550 million standard cubic feet per day from the Eagle Ford Shale. For more information, see Industrial Info's project reports on Train 1, Train 2 and the pre-treatment plant.

The Texas LNG project has been authorized to export to free-trade agreement (FTA) markets, and Texas LNG Limited expects to receive authorization for non-FTA markets; project owners plan to reach a final investment decision in 2018, assuming the permitting process goes as planned. Earlier this year, Samsung Engineering Company Limited (Seoul, South Korea) and KBR Incorporated (NYSE:KBR) (Houston, Texas) were brought onboard to provide detailed engineering and engineering, procurement and construction (EPC) services.

For more information on these and other LNG export projects in the area, see April 10, 2017, article - Cameron County, Texas, Looks Toward $44 Billion in Potential Project Starts, Thanks to LNG.

Vaquero Midstream (The Woodlands, Texas) has signed Honeywell's UOP Russell subsidiary as the technology provider for three proposed additions to its Caymus Cryogenic Sour Natural Gas Processing Plant in Coyanosa, Texas: the $150 million second processing unit, the $150 million third unit and the $150 million fourth unit, each of which will process gas from the Avalon, Wolfcamp and Bone Spring shale formations in the Delaware Basin. The 200 million-standard-cubic-foot-per-day first unit at the Caymus plant was placed into service in August 2016; each of the three additions is expected to have a similar capacity. For more information, see Industrial Info's project reports on Phase II, Phase III and Phase IV.

Two other additions have been proposed at cryogenic natural gas processing plants in the Gulf Coast area: EnLink Midstream LLC's (NYSE:ENLC) (Dallas) $100 million second train at the Riptide plant near Tarzan, Texas, and Energy Transfer Partners LP's (NYSE:ETP) (Dallas, Texas) $100 million second train at the Lincoln Parrish plant in Arcadia, Louisiana. Each train is expected to process 100 million standard cubic feet per day of natural gas from the Permian Basin and Haynesville Shale, respectively, with UOP Russell providing engineering services; but both still are in their early analysis phases. For more information, see Industrial Info's project reports on the Riptide and Lincoln Parrish additions.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 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/.