LOWER MACUNGIE TWP., Pa. — Air Products is selling its liquefied natural gas (LNG) business to Honeywell in a $1.81 billion deal announced earlier this month.
The business includes about 475 employees based in the Allentown area and at a manufacturing facility in Port Manatee, Florida.
A data sheet on Air Products' website said it grew the business over the past 50 years, manufacturing and starting up over 120 LNG plants worldwide.
"No one has more experience than Air Products in designing, and manufacturing coil wound heat exchangers for LNG," the data sheet said. "Our unique ability to integrate the liquefaction process and equipment allows us to optimize the facility’s overall performance, cost, operability, and availability."
The company said it intends to focus on its industrial gas business and related technology and equipment, and driving the energy transition through clean hydrogen at scale.
Honeywell's acquisition of the LNG business — which transports natural gas by liquefying it where transfer via pipelines isn't feasible — is expected to close before the end of the calendar year, an Air Products spokesperson said.
"The LNG business is a great business and at its strongest point in its decades-long history."Seifi Ghasemi, Air Products' Chairman, President and Chief Executive Officer
In a news release, Air Products' Chairman, President and Chief Executive Officer Seifi Ghasemi said the move underscores the company's goals to "grow and invest" in Air Products' industrial gases business.
"The LNG business is a great business and at its strongest point in its decades-long history thanks to the outstanding work of our people, and they will be in good hands to advance as part of Honeywell's related portfolio of technologies," Ghasemi said.
In the past two decades, the LNG market has quadrupled and is only expected to grow.
From 2016 to 2023, the United States was a net exporter of LNG, according to the U.S. Energy and Information Administration — and exports are only expected to increase in the coming years.
Honeywell CEO Vimal Kapur said in a news release that the acquisition will help Honeywell meet "ever-increasing" energy demands worldwide.
"This highly complementary acquisition will further strengthen our energy transition portfolio, and Air Products’ CWHE technology will immediately expand our installed base — creating new opportunities to compound growth in aftermarket services and digitalization through our Honeywell Forge platform," Kapur said.
The sale is one of two big moves by Air Products recently. The company earlier this week announced Aramco would acquire a 50% stake in its Air Products Quadra (APQ) Blue Hydrogen Industrial Gases Company (BHIG).
The partnership looks to develop a lower-carbon hydrogen production business — reaffirming Air Products' prioritizing hydrogen energy.
APC Chairman Dr. Samir J. Serhan called it a deal that would aid in growing "the largest hydrogen network in the Middle East."
