Emerson Process Management, a leading business unit of Emerson Electric Co. (EMR), will aid in front end engineering work for the Prelude LNG development project, located in Western Australia. The project is being developed by Royal Dutch Shell plc. (RDS.A), using its innovative, first-ever Floating Liquefied Natural Gas (FLNG) technology.
The appointment has been made by a consortium comprising Technip (TKPPY) and Samsung Heavy Industries, with the consortium acting as the overall front end engineering and design contractor for the project. Emerson Process Management won the contract largely owing to the Global Framework Agreement broached between Shell and Emerson earlier this year. Such an agreement ensures continuous collaborative efforts between Shell and Emerson, with the latter assigned as the Main Automation Contractor for all of Shell’s operating businesses.
Emerson will assist Technip Samsung Consortium, providing its strategy, design and engineering services of the process control and monitoring technologies to the project. The cost of the project, currently in an engineering and design phase, is yet to be decided.
The FLNG plant is an advanced LNG technology with extraction, gas processing, and liquefaction activity performed in a single plant directly above the gas reserves. Such a plant does not require pipelines for transportation of gas for the purpose of onshore processing. The plant is expected to have an annual production capacity of 3.5 million to 4 million tons of LNG. The plant will also be equipped with technology to locate new gas fields.
The Emerson Process Management business (comprising approximately 28.8% of the company’s total revenue for the second quarter of 2010) provides intelligent control systems and software, measurement instruments, valves, and industry expertise.
Emerson Electric is a diversified global manufacturing and technology company. It offers a wide range of products and services in the areas of process management, climate technologies, network power, storage solutions, professional tools, appliance solutions, motor technologies, and industrial automation. The company reported total revenue of $20.9 billion in 2009, 35% of which came from new products. Founded in St. Louis in 1890, Emerson is the largest publicly traded company in Missouri. The major competitors of Emerson are ABB Ltd. (ABB), General Electric Co. (GE) and Hitachi Ltd. (HIT).
We currently maintain our Neutral rating on the Emerson Electric.
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