Small-scale LNG projects: Growing demand spurs technology joint venture

Modular technology can be used on projects up to 500,000 gallons/day of LNG production

Kiewit Energy Company

Growing demand for LNG in the American transportation sector is driving the construction of small-scale plants, according to two Houston-based firms that are stepping up their efforts to serve the rapidly expanding market.

Kiewit Energy Company and Air Products have agreed to collaborate on small-scale liquefied natural gas (LNG) projects in North America.

The partners said a press release that collaboration provides customers with a one-stop-shop and rapid response to the design, construction and commissioning of projects.

“Natural gas consumption — particularly in the transportation sector — will have a significant impact on the demand for LNG, and our customers need effective, practical ways to move gas resources to market,” said Dan Lumma, senior VP for Kiewit Energy Group Inc.

“Working jointly, Kiewit Energy and Air Products offer customers the best combination of performance, cost and delivery.”

The modularized design and technology offered by Kiewit Energy and Air Products can be used on projects that produce up to 500,000 gallons per day of LNG.

LNG Tanks

Through a unified approach, Kiewit Energy is responsible for project management, overall engineering and design, construction and commissioning, while Air Products leads the design and supply the liquefaction equipment. This streamlined, collaborative approach helps ensure projects meet cost and schedule requirements.

“As a team, Kiewit Energy and Air Products are providing lump sum turnkey offerings that bring significant cost and time-saving benefits to customers,” said Larry Balascak, LNG commercial manager at Air Products. “With an extensive roster of successful LNG projects and experience in working together, we are well-equipped to serve customers considering smaller LNG facilities.”

Earlier this month, Kiewit Energy and Air Products entered into a formal agreement to solidify the alliance. The two companies are currently working together on an LNG export terminal and a peakshaver facility in the United States.