Honeywell to acquire Air Products’ LNG business for $1.81bn

Honeywell has agreed to buy Air Products’ LNG process technology and equipment business for $1.81bn in an all-cash transaction, the companies announced on July 10. The new offering will encompass natural gas pre-treatment and liquefaction, utilising digital automation technologies unified under the Honeywell Forge and Experion platforms.

Currently, Honeywell provides a pre-treatment solution serving LNG customers globally. Air Products’ LNG process technology and equipment business includes in-house design and manufacturing of coil-wound heat exchangers (CWHE) and related equipment. CWHEs provide the highest throughput of natural gas in a single exchanger with a small footprint.

“While the world continues to build the renewables-based energy infrastructure of the future, natural gas is a critical lower-emission and affordable transition fuel that will help meet ever-increasing and dynamic global energy demands,” said Vimal Kapur, CEO of Honeywell.

“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 added.

Air Products’ CEO Seifi Ghasemi said the decision to divest the LNG heat exchanger technology and equipment business reflects the company's continued focus on its two-pillar strategy: to grow the core industrial gas business and related technology and equipment, and deliver clean hydrogen at scale to decarbonize industrial and heavy-duty transportation sectors.