Chart Industries to Supply Key Liquefaction Equipment for the Cedar LNG Project
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In evaluating the recent announcement by Chart Industries regarding its involvement in the Cedar LNG project, we observe a strategic business move that could potentially have a significant impact on the company's performance. It's important to note that LNG projects are capital-intensive and the contracts for equipment supply tend to be substantial. Hence, the deal with Cedar LNG might represent a considerable revenue stream for Chart Industries over the duration of the project.
However, we must consider the volatility of energy markets and regulatory environments, especially related to clean energy transitions and carbon emissions. The mention of lower-carbon LNG facilities aligns with global decarbonization efforts, which may afford Chart a competitive edge as industries shift towards greener alternatives. Yet, the true impact will depend on the successful execution of the project and the market's continued demand for cleaner fuel solutions.
Chart Industries' collaboration with Haisla Nation and Pembina in the Cedar LNG project is notably a first-of-its-kind direct involvement by the Haisla Nation in such a major industrial development. Taking into account the social and economic benefits for the Haisla Nation, this partnership may receive governmental and community support, enhancing project stability. Market reception often favors projects with strong community engagement and social responsibility, which could positively influence investor sentiment toward Chart Industries.
The secured binding offtake agreements are also important for understanding potential revenue forecasts. Such agreements provide a layer of financial certainty, which is a positive indicator for stakeholders. Market trends have been favoring companies involved in the clean energy sector and Chart Industries' positioning in this project could potentially reflect positively in its stock market performance, assuming stable progress and fulfillment of environmental expectations.
ATLANTA, April 15, 2024 (GLOBE NEWSWIRE) -- Chart Industries, Inc. (NYSE: GTLS) (“Chart”), a leading global solutions provider to clean energy and industrial gas markets, announced that it has been chosen to supply critical liquefaction equipment, including the natural gas liquefaction cold boxes and brazed aluminum heat exchangers, to the Cedar liquefied natural gas (LNG) project.
The Cedar LNG project brings together the Haisla Nation and Pembina Pipeline Corporation (Pembina) to develop the Haisla Nation-led project. The project is a key element of the Haisla Nation’s economic and social development strategy and will further advance reconciliation by allowing the Haisla Nation, for the first time ever, to directly own and participate in a major industrial development in its territory. Today, the Haisla people are centered on Kitamaat Village. Home to approximately 700 of the 2,023+ Haisla membership, Kitamaat Village sits at the head of the Douglas Channel in British Columbia, Canada.
Chart received the order for its content, from engineering, procurement and construction (EPC) company Black & Veatch, a leader in the floating liquefied natural gas (FLNG) and a longstanding partner to Chart. This is one of a series of big LNG, FLNG and small-scale LNG projects in recent quarters and years that Chart has won content.
“The Cedar LNG project represents important first steps toward reducing carbon emissions through lower-carbon LNG facilities, which can supply customers looking to move away from more carbon-intensive feedstocks,” said Laszlo von Lazar, president of Black & Veatch’s Energy & Process Industries business.
“We are proud to continue to provide the world with our Nexus of Clean™ solutions for clean power, clean water, clean food and clean industrials, including with Cedar LNG and our committed, loyal partner of Black & Veatch,” stated Jill Evanko, Chart’s CEO and President. “Cedar LNG, the Haisla Nation-led project, is not only another practical step toward decarbonization; the project further supports the Haisla Nation’s economic and social development approach.”
During the first week of April 2024, Pembina and its project partners disclosed that they have given a notice to proceed to their Cedar LNG export project contractors and have secured binding offtake agreements for the project.
About Chart Industries
Chart Industries, Inc. is an independent global leader in the design, engineering, and manufacturing of process technologies and equipment for gas and liquid molecule handling for the Nexus of Clean™ - clean power, clean water, clean food, and clean industrials, regardless of molecule. The company’s unique product and solution portfolio across stationary and rotating equipment is used in every phase of the liquid gas supply chain, including engineering, service and repair and from installation to preventive maintenance and digital monitoring. Chart is a leading provider of technology, equipment and services related to liquefied natural gas, hydrogen, biogas, and CO2 capture amongst other applications. Chart is committed to excellence in environmental, social, and corporate governance (ESG) issues both for its company as well as its customers. With 64 global manufacturing locations and over 50 service centers from the United States to Asia, Australia, India, Europe, and South America, the company maintains accountability and transparency to its team members, suppliers, customers, and communities. To learn more, visit www.chartindustries.com.
Investor Contact:
John Walsh
VP, Investor Relations
770-721-8899
john.walsh@chartindustries.com
