Honeywell gets a new order
In a press release on December 12, Honeywell (HON) said that it would supply a gas processing plant to Cogent Midstream. The plant will have the capacity to process 200 million cubic feet of gas per day. The plant is expected to be completed by the end of 2019. The plant will be located at the Wolfcamp Formation in the Permian Basin in Texas. The new plant will extract natural gas liquids from natural gas produced from several countries.
However, Honeywell didn’t disclose the financial aspects of the deal. The order will strengthen the backlog of Honeywell’s UOP business, which has been growing. As part of the deal, Honeywell will supply a modular cryogenic plant with refrigeration and dehydration units. Honeywell will also design the plant as required.
Neil Eckersley, Honeywell’s UOP Russell general manager, said, “Cogent Midstream selected the UOP Russell plant because it is a proven and reliable technology, and because the modular design vastly reduces the time before the plant can go into production. With the addition of this new plant, Cogent’s processing capacity at its Big Lake Plant will increase to 400 million cubic feet per day.”
Honeywell’s stock price closed ~0.4% higher at $138.82 on December 13. United Technologies (UTX), Textron (TXT), and Boeing (BA) declined 0.34%, 2.03%, and 0.37% respectively. The broader market SPDR S&P 500 (SPY) remained more or less flat.