Air Products and Chemicals bags new client order
Yesterday, Air Products and Chemicals (APD) announced that it had bagged a new client order. APD will provide its proprietary LNG technology, equipment, and related process license to Golden Pass Products LLC, which is a joint venture between Qatar Petroleum and ExxonMobil (XOM). However, APD didn’t disclose the financial aspects of the deal.
The plant will be implemented in Sabine Pass, Texas. As per the deal, APD will supply its proprietary AP-C3MRTM natural gas liquefaction technology equipment and three of its MCR Main Cryogenic heat exchangers. The plant is expected to have a production capacity of 16 million tons per year of liquefied natural gas. The plant is expected to be operational by 2024. The deal should help APD build its backlog, which could drive growth.
Dr. Samir Sehran, executive vice president of Air Products, said, “Air Products is very honored to be selected for the Golden Pass project involving ExxonMobil and Qatar Petroleum. Our company has a long and successful history of serving the needs of the LNG industry and we intend to remain the leader in LNG equipment and liquefaction technology.”
At 14:45, APD was up 0.9% and trading at $175.61. The broader-market S&P 500 (SPY) was up 0.4%. The stock is trading 9.6% above its 100-day moving average price of $160.20, indicating prevailing bullishness in the stock.
Investors can indirectly hold APD by investing in the Materials Select Sector SPDR Fund (XLB). The fund also provides exposure to DowDuPont (DWDP) and Sherwin-Williams (SHW) with weights of 21.1% and 5.0%, respectively.