Ken West, President and CEO of Energy and Sustainability Solutions (ESS) at Honeywell, outlines how the Air Products LNG process technologies acquisition creates a new industry execution model
Global energy demand is expected to increase by up to 18% by 2050, according to industry analysts. The world is attempting to meet this growing need with an increasing mix of energy sources – from renewables to bio-based sources such as sustainable aviation fue, in addition to traditional sources.
Liquefied natural gas (LNG) is becoming a key energy source for some countries to ensure energy security. Consequently, the global LNG industry is experiencing rapid transformation, and also faces several challenges including project bankability, execution risk, and emissions reduction.
Honeywell’s 2024 acquisition of Air Products’ advanced LNG Process Technology business means we have a solution to overcome many of those challenges. The integration of the two operations since has gone well beyond expanding Honeywell’s capabilities. It represents a fundamental shift in developing and executing LNG projects. By leveraging modularisation, digitalisation, and automation, Honeywell can expedite bringing LNG projects to market and enhance peak asset performance. In the process it can redefine the economics of large-scale LNG projects.
Accelerating the timeline
One of the main challenges in LNG project development is the cost and complexity of execution. Traditionally, the model involves a web of different suppliers for pretreatment, liquefaction, and automation. This mix can result in extended timelines, increased costs, and uncertainty regarding accountability.
Now Honeywell’s acquisition, combined with our pretreatment solutions, has created a new execution model for the industry. By consolidating expertise and establishing a single point of accountability, we mitigate project and interface risks, increase reliability of outcomes, and expedite the timeline from contract signing to project delivery.
At Honeywell, we are already witnessing these benefits through:
- Optimised design resulting from reduced scope fragmentation
- Three to six months of time saved through standardized engineering
- More secure financing, as bankers prefer projects with a clear pathway to execution and reduced risk
Today some customers still prefer a more traditional path, collaborating with various industry partners throughout the process, and Honeywell also supports its customers with this model.
The digital edge
By integrating our licensor expertise, advanced automation and digital tools into the process, Honeywell can also provide end-users a comprehensive view of the project. Additionally, the incorporation of digital twins and predictive analytics directly into the LNG value chain enables operators to identify issues faster, predict maintenance needs, and increase output.
For Honeywell, this approach is anticipated to improve LNG production efficiency by 1% to 2%, which is a substantial gain in a sector where even minor improvements can result in millions of dollars in value.
Clearing the air
While incorporating LNG as an energy source brings significant benefits in emissions reduction, there is pressure to minimise methane leaks and reduce LNG’s overall carbon footprint.
Through end-to-end process integration, Honeywell can more effectively implement carbon capture strategies. Additionally, automation-driven leak detection enables operators to monitor and address methane emissions in real time.
Truly a new era
Honeywell’s integration of the LNG process technology business represents a strategic shift that transforms the design, execution, and optimisation of LNG projects. By consolidating key capabilities under one umbrella, we are enhancing the bankability, efficiency, and sustainability of LNG projects.
With global LNG demand expected to grow by over 50% by 2040 – according to Shell’s LNG Outlook 2024 – the need for faster, more efficient, and lower-carbon LNG solutions will only intensify. With its expanded capabilities, Honeywell is at the forefront of this evolution. We are demonstrating, in the process, that energy security and low-carbon energy are not mutually exclusive – rather, they are two sides of the same coin.
