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Air Products to Provide Technology to Mozambique LNG Project

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Air Products and Chemicals, Inc. (APD - Free Report) has signed a deal to offer its patented liquefied natural gas (LNG) technology, equipment and associated process licensing and advisory services to the Mozambique LNG Project.

Air Products' world-leading LNG manufacturing facility in Port Manatee, FL, will produce two LNG heat exchangers, which will be delivered to the Afungi Peninsula-based project site in Cabo Delgado, Mozambique. Notably, the LNG production plant is expected to be the first onshore LNG project at the Republic of Mozambique in Southeast Africa.

Per the deal with EPC contractor CCS JV, Air Products will offer two proprietary coil wound main cryogenic heat exchangers (MCHE) for the Mozambique LNG Project. Reportedly, MCHEs will run at the site as part of the two distinct LNG production trains geared to generate in total about 13 million tons of LNG per year from the Golfinho/Atum natural gas fields in Mozambique.

Proprietary LNG technology from Air Products processes and cryogenically liquefies valuable natural gas for consumer and industrial use. Notably, it is essential to meet the growing energy needs of the world and the desire for clean energy. The company produced LNG heat exchangers for over five decades and operated in 20 countries worldwide.

Air Products supports the LNG industry by providing key equipment and process technology for the liquefaction process of natural gas for large export plants, small and medium-sized LNG plants, floating LNG plants, and LNG peak shavers.

The company is also involved with the Coral South floating LNG (“FLNG”) project. Notably, it is Mozambique’s first offshore FLNG project and is scheduled to start production in 2022.

Air Products’ shares have gained 1.3% in the past year against the industry’s decline of 48.3%.

For fiscal 2020, it continues to expect adjusted earnings of $9.35-$9.60 per share, which suggests growth of 14-17% from the year-ago reported figure.

It also expects adjusted earnings of $2.10-$2.20 per share for second-quarter fiscal 2020, implying a 9-15% year-over-year rise.

Air Products and Chemicals, Inc. Price and Consensus

Zacks Rank & Stocks to Consider

Air Products currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Daqo New Energy Corp. (DQ - Free Report) , NovaGold Resources Inc. (NG - Free Report) and Barrick Gold Corp. (GOLD - Free Report) .

Daqo New Energy has a projected earnings growth rate of 353.7% for 2020. The company’s shares have rallied 57.2% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

NovaGold has a projected earnings growth rate of 11.1% for 2020. It currently flaunts a Zacks Rank #1. The company’s shares have gained 54.4% in a year.

Barrick Gold currently has a Zacks Rank #2 (Buy) and a projected earnings growth rate of 49% for 2020. The company’s shares have rallied 28.7% in a year.

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