Honeywell acquires remaining 30% stake of gas processor UOP Russell
The $240-MM deal will complete the acquisition, which began with the purchase of a 70% stake in Thomas Russell Co. in 2012.
Honeywell has acquired the remaining 30% stake in UOP Russell LLC, which develops technology and manufactures modular equipment to process natural gas. In 2012, Honeywell acquired a 70% stake in the Thomas Russell Co. to form UOP Russell, which became part of Honeywell UOP. The parties agreed to a mechanism for Honeywell to acquire the remaining stake within three years of closing.
“Tom Russell and his company pioneered the introduction of modular technology to quickly and economically remove contaminants from natural gas and recover valuable natural gas liquids,” said John Gugel, vice president and general manager for Honeywell UOP’s Gas Processing and Hydrogen business. “We have continued to build on that foundation, applying Honeywell processes and Honeywell UOP technology, and expanding the business internationally to help meet global demand for natural gas, which is expected to nearly double by 2040.”
The UOP Russell product line includes skid-mounted, pre-engineered modular equipment that is factory built to precise specifications. The equipment is delivered to remote locations and then assembled onsite, significantly reducing construction time and expense, improving operational reliability and enabling customers to begin processing gas and earning revenue more quickly vs. conventional field-erected execution methods.
Honeywell UOP has applied UOP Russell methods to expand its offerings of modular equipment for critical refining and petrochemical process units and other applications. UOP Russell’s modular equipment is one of the delivery platforms offered by Honeywell UOP to treat and process natural gas. The business also provides technologies to recover valuable condensate and natural gas liquids, such as ethane, propane and butane, and to separate water, mercury, sulfur, carbon dioxide and other contaminants from raw natural gas streams.
Honeywell UOP has supplied equipment and pretreatment technology to more than 350 gas processing projects globally, representing more than 20 Tcfy of natural gas production and nearly 40% of global LNG production. In the last decade alone, worldwide consumption of natural gas has grown at an average annual rate of more than 2.3%, from 95.3 Tcfy in 2004 to 120 Tcfy in 2014, according to BP’s Statistical Review of World Energy.
According to the International Energy Agency, demand
for natural gas will grow to 183 Tcfy by 2040, led by China and the Middle
East, making it the fastest-growing fossil fuel.
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