Honeywell UOP LLC process technology unit and engineering/contractor Black & Veatch (BV) formed an alliance Tuesday to develop liquefied natural gas (LNG) production facilities for supplying the rail, vehicle and marine transportation sectors.

The advent of more use of LNG for transportation purposes in the coming years is spurring increased interest in the development of a much larger network of small-scale facilities around the United States to product LNG. Units of General Electric, Clean Energy Fuels Corp. and Ferus Natural Gas Fuels formed a joint venture entity earlier this month to develop a number of these production facilities (see Daily GPI, Sept. 20).

In a similar move, on Wednesday, Westlake Village, CA-based Applied Natural Gas Fuels Inc. announced plans to build a LNG production platform at Midlothian, TX, southwest of Dallas. It will have daily production capacity of 86,000 gallons, and onsite storage of up to 1.5 million gallons of LNG.

The latest collaboration combines BV’s patented technology for natural gas liquefaction processes with UOP’s modular plant equipment and gas processing technology. The pair touted its combination as allowing clients in North America to realize savings in small-scale LNG plant development through expedited delivery and construction capabilities from the alliance.

Through the alliance the companies plan to market and implement the BV standardized LNG production facility, PRICO E Pack plant. BV touts its PRICO as a proven process with a 50-year track record in the gas industry.

As a pairing, the two companies will offer integrated, small-scale LNG plants capable of processing 50,000 to 500,000 gallons of LNG daily/single liquefaction train, and the facilities would have the capability of being expanded.

“LNG can be sold as transportation fuel or used instead of traditional diesel in high-fuel consumption, high-horsepower railroad, marine and mining applications, along with oil/gas exploration and production,” a Honeywell spokesperson said. According to a report this summer, the development of LNG production capability is lagging behind demand for the fuel’s use in transportation and other sectors (see Daily GPI, Aug. 5).

The new partners said their agreement provides for “a one-stop solution” for the development of the LNG production facilities, offering design, procurement, construction and fabrication solutions.