Air Products’ AP-X® LNG Technology and Equipment Selected for the North Field South Project

Air Products (NYSE: APD), the world’s leader in liquefied natural gas (LNG) technology and equipment, has been selected to provide its proprietary AP-X® LNG Process technology and equipment to Qatargas for the North Field South (NFS) Project in Ras Laffan, the State of Qatar. It includes the supply of two new LNG process trains, adding to the four trains currently being fabricated for the North Field East (NFE) LNG project, each with an additional production capacity of eight million tonnes per annum. These mega LNG trains leverage AP-X liquefaction technology, which enables significantly higher LNG production.

“Once again, we are very pleased to have our LNG technology selected for the newest liquefaction expansion project in Qatar’s North Field. Air Products’ proven AP-X process technology enables significantly higher LNG production while having flexible operation over a wide range of production capacities. The unrivaled performance, reliability, and efficiency of our equipment, coupled with responsive technical service and support, enable customers to optimize a facility’s overall performance with safe and sustainable solutions.,” said Dr. Samir J. Serhan, Air Products’ Chief Operating Officer.

Air Products has supplied key equipment and technology for all of Qatar’s existing LNG trains operating in Ras Laffan, including the initial units, which started production in 1996 using Air Products’ AP-C3MRTM LNG Process technology; six AP-X LNG Process trains, which started up between 2009 and 2011; four AP-X LNG Process trains currently in fabrication; and the two new AP-X LNG Process trains for NFS.

Air Products will supply Qatargas with its proprietary AP-X natural gas liquefaction process technology and equipment and associated technical services. The equipment includes main cryogenic heat exchangers (MCHEs), subcooling heat exchangers (SCHEs), Rotoflow® turbomachinery companders and nitrogen economizer cold boxes. All engineering and design will be done in Air Products’ global corporate headquarters office in Allentown, Pennsylvania, and the MCHE and SCHE manufacture will be executed at Air Products’ LNG equipment manufacturing facility located on the west coast of Florida, less than a mile from the deep-water port at Port Manatee.

Air Products opened its world-class Port Manatee facility in January 2014 and completed a 60% expansion in October 2019 to meet the needs of the ever-growing LNG industry. In October 2018, a new LNG equipment test facility was dedicated, which enables Air Products to continually improve the reliability and yield produced from its LNG equipment and to design new equipment.

Air Products’ proprietary LNG process technology and equipment, vital to helping meet the world’s increasing energy needs and desire for clean energy, processes and cryogenically liquefies valuable natural gas for consumer and industrial use. For over 50 years Air Products has manufactured LNG heat exchangers, which currently operate in over 100 LNG trains in 20 countries around the world.

Typically, an LNG heat exchanger can be as large as over 15 feet (5 meters) in diameter and 180 feet (55 meters) long. A finished unit can weigh as much as 500 tons.

Air Products’ LNG process technology and equipment is the heart of an LNG production plant. The technology, in place at some of the most remote locations around the world, takes natural gas and unlocks its value by liquefying it and making it possible to ship it economically. The LNG is eventually re-gasified for energy uses.

The majority of total worldwide LNG is produced with Air Products’ technology. In support of the LNG industry, Air Products provides process technology and key equipment for the natural gas liquefaction process for large export plants, 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 membrane nitrogen generators for LNG carriers and land-based membrane and cryogenic nitrogen systems for LNG import terminals and baseload LNG plants.

NextDecade Announces Framework Agreements with Global Infrastructure Partners and TotalEnergies to Support the Development of the Rio Grande LNG Project

NextDecade Corporation (NextDecade) (NASDAQ: NEXT) today announced that it has entered into framework agreements with Global Infrastructure Partners (GIP) and TotalEnergies (NYSE: TTE) to enable the final investment decision (FID) for the Rio Grande LNG project (RGLNG) Trains 1, 2 and 3 (Phase 1) and to provide momentum for the further development of RGLNG Train 4 and Train 5.

NextDecade, GIP and TotalEnergies have entered into framework agreements whereby GIP would become a majority investor in Phase 1, and TotalEnergies would become a 16.67% investor, both subject to execution of definitive documentation and FID. The agreements are expected to further provide GIP and TotalEnergies options to invest in RGLNG Train 4 and Train 5 and options to invest in the planned carbon capture and sequestration (CCS) project at RGLNG.

In addition, TotalEnergies has agreed to purchase 5.4 million tonnes per annum (MTPA) of LNG from Phase 1 for 20 years on a free on board (FOB) basis indexed to Henry Hub and has options to purchase LNG from Train 4 and Train 5. TotalEnergies has also agreed to acquire in three tranches a 17.5% common stock position in NextDecade for an aggregate purchase price of $219.4 million.

The first tranche of $40 million of NextDecade common stock was issued and sold today at $4.9837 per share. The second tranche of $110 million will be issued and sold at the same price after FID on Phase 1. The third tranche will be issued and sold in an amount such that the combined stock purchases equal 17.5% of the outstanding common stock of NextDecade after the closing of the third tranche. The issuance and sale of the common stock in the third tranche will be conditioned on the approval of NextDecade shareholders. Based on current estimates, NextDecade expects to sell approximately 45.1 million shares of common stock in the aggregate to TotalEnergies at an average price per share of approximately $4.86.

“This announcement marks a momentous milestone for NextDecade,” said Matt Schatzman, NextDecade Chairman and Chief Executive Officer. “We are excited to work with GIP and TotalEnergies on RGLNG and our proposed CCS project at RGLNG. We are also eager to grow our partnership with GIP and TotalEnergies focusing on our shared vision to reduce carbon emissions in the energy sector.”

“With the world increasingly moving toward sustainable solutions, this partnership among GIP, TotalEnergies and NextDecade reinforces our shared commitment to helping lead the transition and shaping of the future of energy,” said Bayo Ogunlesi, Chairman and Chief Executive Officer of Global Infrastructure Partners. “This venture marks a critical step in displacing coal usage and upholds GIP’s commitment to promoting decarbonization, energy security and energy affordability. Our shared vision with TotalEnergies and NextDecade, combined with our capabilities, will undoubtedly help catalyze the development of cleaner energy.”

"We are delighted to join forces with NextDecade and GIP on the development of this new US LNG project, for which TotalEnergies shall leverage its extensive experience in LNG and technical expertise in major industrial project development," said Patrick Pouyanné, Chairman and CEO of TotalEnergies. “Our involvement in this project will enhance our LNG capacity by 5.4 MTPA strengthening our ability to ensure Europe's gas supply security and to provide Asian customers with an alternative fuel that emits half as much as coal.”

NextDecade continues to target FID on Phase 1 by the end of the second quarter with FIDs of its remaining trains to follow thereafter.