23-04-2012

Air Products wins technology selection for Ichthys LNG project in Australia

Air Products, the leader in providing liquefied natural gas (LNG) technology and equipment to the world, is again increasing its presence in Australia’s rapidly growing LNG production market. Air Products has signed an agreement with JKC Joint Venture (JV) and INPEX Operations Australia Pty Ltd, for the supply of the liquefaction technology and main cryogenic heat exchangers for two process trains that will produce a total of 8.4 million tons of LNG per year. Air Products’ LNG heat exchanger technology will operate in Darwin, Australia as part of the Ichthys LNG Project (INPEX 76% Operator; Total 24%), expected to be onstream by the end of 2016.

“This project extends our presence in Australia, which is the most active area in the world right now in LNG project development. If the pace of activity continues, before too long Australia may be able to lay claim to the title of the world’s largest exporter of LNG,” said Jim Solomon, director – LNG at Air Products. “Spurring this growth is the fact that natural gas usage is increasing in importance on a worldwide basis as a source of clean energy. As a result, Air Products is seeing increased project activity globally, and we see the projected growth for LNG continuing over the next decade.”

Under the agreement with JKC and INPEX, Air Products will provide two main cryogenic heat exchangers with a proprietary propane pre-cooled mixed refrigerant process using the SplitMR® machinery configuration to produce the LNG. The LNG units will process natural gas from the substantial reserves located in the Browse Basin offshore Western Australia. The Ichthys LNG Project is a joint venture between INPEX as operator and Total. The project will provide crucial long term energy supply to Japan and other customers.

JKC Joint Venture is a JV comprising JGC Corporation, KBR and Chiyoda Corporation. INPEX Operations Australia Pty Ltd is acting as agent for and on behalf of Ichthys LNG Pty Ltd.

This is Air Products’ second Australian LNG project announcement in the past year. In 2011, Air Products was selected to supply its proprietary cryogenic coil wound LNG heat exchangers for what is the world’s first sanctioned Floating LNG (FLNG) facility being developed for the Shell Prelude FLNG Project, also to be located in the Browse Basin off the northwest coast of Western Australia. INPEX is a 17.5 percent participant in the Prelude FLNG Project as well.

Air Products is also providing its proprietary LNG process technology and equipment for three process trains producing up to 15 million tons of LNG per annum at the Gorgon Project, currently under construction on Barrow Island off the coast of Western Australia.
 
Air Products’ involvement in LNG projects in Australia dates back to the late 1980s when the company was selected to provide it’s propane pre-cooled mixed refrigerant process and MCR® cryogenic heat exchangers for the first three trains at the North West Shelf Venture LNG Project, Australia’s first LNG project.

A majority of the total worldwide LNG is produced with Air Products’ technology. Air Products has designed, manufactured and exported over 90 coil wound heat exchangers for LNG projects in 15 countries from its Wilkes-Barre, Pa., United States facility over the last four decades. In support of the LNG industry, Air Products provides process technology and key equipment for the heart of the natural gas liquefaction process, and also nitrogen plants for the base-load LNG facility, as well as process technology and equipment for small and mid-sized LNG plants, floating LNG plants and LNG peak shavers. Upstream, Air Products provides both nitrogen and natural gas dehydration membrane systems for offshore platforms. Downstream, Air Products provides dry inert gas generators for LNG carriers, shipboard membrane nitrogen systems, and land-based membrane and cryogenic nitrogen systems for LNG import terminals.