TOYO and Chart E&C Sign Mid-Scale LNG Liquefaction Technology and Equipment Supply Agreement
Chiba, Japan – Aug. 4, 2009 – Toyo Engineering Corporation (“TOYO”) of Japan announced the signing of a cooperation agreement with Chart Energy & Chemicals, Inc. (“Chart E&C”), a wholly-owned subsidiary of Chart Industries, Inc. (NASDAQ: GTLS), to jointly pursue certain mid-scale liquefied natural gas (LNG) opportunities. For those opportunities that TOYO and Chart E&C agree to pursue, Chart E&C will provide the LNG liquefaction process technology, including integrated natural gas liquids (NGL) and nitrogen rejection technology as appropriate together with equipment including brazed aluminum heat exchangers, cold boxes and air cooled heat exchangers. TOYO will provide overall Engineering, Procurement and Construction (EPC) services and project management.
Yutaka Yamada, President and CEO of TOYO, was understandably excited with the collaboration, stating “Mid-scale LNG is one of the important options available for developing small- to medium-size gas fields and coal bed methane (CBM), which has recently been highlighted as a recoverable energy resource. Chart’s LNG technology, employing the single mixed refrigerant (SMR), is a very simple process solution requiring less capital and hence lower business risk, less equipment and hence a smaller footprint, leading to a shorter EPC schedule, all of which are economically attractive for the smaller gas fields. TOYO and Chart E&C also agreed to jointly explore opportunities in the field of Floating-LNG. In addition to TOYO’s existing business lines that include ammonia, methanol, DME (Dimethyl-ether) and the micro-GTL(gas to liquids) process that is currently under development, TOYO can offer a range of solutions for the utilization of stranded natural gas resources by adding this mid-scale LNG option to the company’s business line.”
“This Agreement with TOYO broadens Chart E&C’s value proposition as a leader in mid-scale LNG technology and supplier of highly engineered cryogenic equipment such as brazed aluminum heat exchangers, modular LNG units and other gas processing equipment to the emerging mid-scale LNG market. It also complements our long-standing critical liquefaction equipment supply relationships for base-load LNG plants” said Michael Bright, President of Chart Energy & Chemicals, Inc. “I am excited by the opportunities this cooperation promises to bring to Chart E&C and look forward to a long-term, mutually beneficial relationship with TOYO and to the delivery of many successful projects to our mid-scale LNG customers.”
Certain statements made in this news release are or imply forward-looking statements about Chart, such as statements about future opportunities or performance and other information that is not historical in nature. These statements are made based on management's expectations concerning future events and are subject to factors that could cause actual results to differ materially, including the cyclicality of product markets, a delay or reduction in purchases, the impact of economic and financial conditions, fluctuations in energy prices, and competition. For a discussion of these and additional factors that could cause actual results to differ from forward-looking statements, see Chart's filings with the U.S. Securities and Exchange Commission.
TOYO, employing over 7,000 staff members globally, provides EPC services, design, engineering, equipment procurement, construction, operation and technical services in areas such as general chemicals, petrochemicals, petroleum refining, natural gas, power generation, nuclear power, advanced production systems, distribution networks, pharmaceutical, biotechnology and environmental business. In addition, TOYO provides technology related to its proprietary urea process technologies, DME and polystyrene processes. For more information, visit http://www.toyo-eng.com/.
Chart 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 in seven states and an international presence in Australia, China, the Czech Republic, Germany and the United Kingdom. For more information, visit: http://www.chart-ind.com.