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IHI Corporation and Aker Solutions enter mid-scale LNG liquefaction industry

-April 14, 2011-

press

IHI Corporation (IHI) and Aker Solutions are to jointly offer engineering, procurement, and construction (EPC) solutions for LNG liquefaction plants using Chart Energy & Chemical’s (Chart) liquefaction technology.

Entry into the mid-scale LNG liquefaction industry by IHI and Aker Solutions, in collaboration with Chart, reflects this dynamic and rapid movement in the LNG market. IHI and Aker Solutions are also focusing on the most recent trend in the North American LNG markets, where extensive growth in the development of shale gas as a resource in recent years has led gas operators to consider adding a liquefaction export facility to their existing LNG import terminals.

Given LNG is clean, safe and easy to use, with low CO2 emissions, recent research indicates the worldwide demand for LNG is expected to grow stronger in the future with the supply-demand balance not expected to tighten until 2015. Whereas in the past, LNG developments have focused on a few very large gas fields, it is shifting toward a wide variety of gas sources, including the more than 2,000 mid-tier gas fields with reserves of between 0.25 and 5.0 trillion cubic feet. These fields exist throughout the world as stranded gas fields, gases that would previously have been wasted through flaring, and unconventional gas resources such as coal bed methane, shale gas, etc.

IHI and Aker Solutions have together, as a general partnership, executed EPC for LNG related projects since 2004. In 2009, they successfully completed the Cameron LNG import terminal in Hackberry, Louisiana, USA. Scheduled for completion in 2011, work is currently being executed for the Gulf LNG import terminal in Pascagoula, Mississippi, USA.

IHI and Aker Solutions will jointly provide EPC and project management of the entire liquefaction plant, including pre-treatment, storage, loading, and all other utilities and offsite facilities.

Chart will provide the liquefaction technology, along with engineering, procurement and fabrication of the key liquefaction equipment. Chart’s Integrated Pre-Cooled Single Mixed Refrigerant (IPSMRTM) process allows for simple, compact, and modular plant configurations. It is best suited for mid-scale facilities with annual liquefaction capacities of up to 2.0 million tons, providing the opportunity for faster delivery and start-up with lower lifecycle costs.

Having a broad experience worldwide in the construction of LNG receiving terminals, entering the LNG liquefaction market allows IHI to offer clients a wider range of services in the worldwide LNG value chain, building upon the solid LNG storage and re-gasification capability that both companies possess.

About IHI:
IHI Corporation (IHI), started as a shipbuilding company, has over the years expanded its business into various fields to become one of the leading engineering and construction companies for heave industries. With over 24, 000 employees, IHI employs its expertise in mechanical engineering to offer clients in key business areas: Energy and Resource, Shipbuilding and Social Infrastructure, Industrial Machinery and Systems, Rotating Equipments and Mass Production Machinery, and Aero Engine and Space.
As part of the Energy and Resource business fields, IHI has over 40 years of experience in LNG receiving terminals since the first LNG terminal project was started in Japan. Currently IHI has taken part in 126 LNG tanks and 35 terminals worldwide. With IHI’s broad international experience in the EPC of LNG tanks and terminals, IHI offers the best possible solution to all clients.
About Aker Solutions:
Aker Solutions ASA, through its subsidiaries and affiliates ("Aker Solutions"), is a leading global provider of engineering and construction services, technology products and integrated solutions. Aker Solutions' business serves several industries, including oil & gas, refining & chemicals, mining & metals and power generation. The Aker Solutions group is organised in a number of separate legal entities. Aker Solutions is used as the common brand/trademark for most of these entities.
Aker Solutions' parent company is Aker Solutions ASA. Aker Solutions has aggregated annual revenues of approximately NOK 58 billion and employs approximately 22 000 people in about 30 countries.
Aker Solutions is part of Aker (www.akerasa.com), a group of premier companies with a focus on energy, maritime and marine resource industries. The Aker companies share a common set of values and a long tradition of industrial innovation. Through its majority-owned holding company Aker Holding AS, Aker controls 40.27 percent of the shares in Aker Solutions, and takes an active role in the development of the company.
Aker Solutions’ Process and Construction business area is a global provider of onshore engineering, procurement, construction and commissioning services to the natural resources and energy markets. We supply niche process expertise with high technology and know-how content for projects across chemicals, polymers, gas processing and refining; mining and metals; onshore liquefied natural gas (LNG) terminals and storage; power generation; biofuels; carbon capture; nuclear and water management.
About Chart:
Chart Industries, Inc. (Nasdaq: GTLS) is a leading global manufacturer of highly engineered equipment used in the production, storage and end-use of hydrocarbon and industrial gases. The majority of Chart's products are used throughout the liquid gas supply chain for purification, liquefaction, distribution, storage and end-use applications, the largest portion of which are energy-related. Chart has domestic operations located across the United States and an international presence in Asia, Australia and Europe. For more information, visit: http://www.chart-ind.com/


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