Honeywell Selected To Help New Production Facility Meet Rising Demand For Clean Energy

Experion® PKS-based System Selected for World's First Floating Liquefied Natural Gas Unit

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Oct 22, 2013, 09:00 ET

SINGAPORE, Oct. 22, 2013 /PRNewswire/ -- Honeywell (NYSE: HON) today announced that it will provide an Integrated Control and Safety System (ICSS) for the world's first floating liquefied natural gas (LNG) liquefaction, regasification and storage unit (FLRSU) for the Exmar-Pacific Rubialis Energy project offshore Colombia.

With the surge in demand for alternative cleaner energy, the project will help to supply valuable natural gas to energy users globally. Natural gas is the world's fastest growing energy source, with demand expected to increase by nearly 2 percent a year through 2035, according to the U.S. Energy Information Administration. Accounting for about a third of that increase will be unconventional gas, which includes natural gas in remote locations, such as offshore. Today's floating facilities allow companies to unlock these difficult-to-reach gas reserves.

"Honeywell's extensive experience in LNG shipping and offshore was a key factor for our partners in this project," said David Higgins, director marine, Honeywell Process Solutions. "We are working with Black & Veatch on topside pre-treatment and liquefaction processes and with Wison for the barge, cargo tanks and utilities. Thus, we are bringing our process controls and marine experience together in this groundbreaking project which will be the first to produce LNG in the offshore environment."

This vessel is a non-propelled barge equipped to convert natural gas into LNG. It is also able to store the LNG for offloading to shuttle tankers or LNG carriers. Liquefied natural gas takes up about 1/600^th the volume of natural gas in a gaseous state and allows companies like Exmar to more efficiently transport the product to its end-customers.

"While the industry continues to discuss the potential of floating LNG facilities in bringing new sources of clean energy to market, this partnership enables us to bring the right technology and approach to make production of LNG at sea a commercial reality," said Greg Wayne, project manager, Black & Veatch Corporation. "We chose Honeywell because of its strong presence in LNG marine applications."

The FLRSU will be constructed at Wison Offshore & Marine's fabrication yard in Nantong, China, with Black & Veatch providing the topside LNG plant design as well as LNG equipment and components. International ship management group Exmar will own and operate the FLRSU in the Caribbean Sea starting in the first quarter of 2015.

"We are extremely pleased to introduce this innovation into the LNG industry," said Exmar CEO Nicolas Saverys. "Exmar is the first operator to do re-gasification onboard a ship, and we are the first one doing ship-to-ship liquid transfer. Now, with the FLRSU, we will be the first one to do floating LNG liquefaction, enabling us to bring previously-untapped gas to consumers at a time when the world wants cleaner fuels."

"This project is a ground-breaking effort for the industry and Wison is pleased to work with Honeywell and Black & Veatch to assemble the best technological team possible to ensure that this facility is capable of performing to the level Exmar requires," said Dr. L. Dwayne Breaux, executive vice president, Wison Offshore & Marine.

Honeywell's ICSS solution is based on the company's Experion® Process Knowledge System (PKS). The critical ICSS solution will manage control and safety operations of the topside and hull and also monitor operational safety during cargo handling. Additionally, closed-circuit television, and fire and gas detectors will be integrated with the system.

For further information about Honeywell automation and control solutions for marine, visit www.honeywellprocess.com

Honeywell (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; turbochargers; and performance materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London, and Chicago Stock Exchanges. For more news and information on Honeywell, please visit www.honeywellnow.com. Honeywell Process Solutions is part of Honeywell's Automation and Control Solutions group, a global leader in providing product and service solutions that improve efficiency and profitability, support regulatory compliance, and maintain safe, comfortable environments in homes, buildings and industry. For more information about Process Solutions, access www.honeywellprocess.com.

This release contains certain statements that may be deemed "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. We identify the principal risks and uncertainties that affect our performance in our Form 10-K and other filings with the Securities and Exchange Commission.

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