Chinese companies are building a network of LNG fueling stations for heavy vehicles, and Cleveland's Chart Industries has become a major supplier -- while the U.S. LNG market waits for the natural gas-powered trucks.
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View full sizeChart Industries is one of the world's leading suppliers of specialized cryogenic equipment for liquid natural gas, petrochemical and industrial plants being built around the world. The "cold box" being installed here progressively cools and liquefies air.GARFIELD HEIGHTS, Ohio -- China's decision to embrace natural gas fuel vehicles is paying off for Chart Industries.
Chart, a global manufacturer and supplier of gas liquefaction technologies, has won a contract to supply 50 permanent liquefied natural gas, or LNG, fueling stations in China.
The deal is at least the fourth Chinese LNG contract in the last year.
Chart's Asia distribution and storage division today said it has signed a 30-month deal with Shandong Hanas New Energy Co., Ltd, as that company's exclusive supplier of LNG equipment.
Chart expects about one third of the 50 stations will be ordered this year. Nanjing Xinye, a Chart company doing business in China, will provide the station dispensers.
"The total value of this supply agreement could exceed $35 million and it continues the LNG equipment success we have had in China. We recently received $7 million in orders related to this agreement," said Tom Carey, president of Chart's D&S Group.
In 2013, Chart signed three separate deals with PetroChina totaling nearly $100 million for LNG equipment and fueling stations.
Chart also signed an agreement in 2013 to provide Shell Oil Co. with LNG equipment at up to 20 Travel Centers America fueling stations in the United State.
Chart last week announced the first of the U.S. stations was opening in California and that future stations would be built as demand increases.
The Shell LNG fueling lanes at Travel Centers plazas will be built along side diesel fueling lanes. The LNG equipment will be able to fill 100 to 150 trucks per day.
The newest Chinese deal comes just days after Chart lowered its sale expectations for 2014 from a range of $1.3 billion-to-$1.35 billion to a range of $1.25 billion-to $1.3 billion.
In the first three months of the year, Chart reported net profits of $12 million, or 38 cents per share, on sales of $266.2 million.
That compares to net profits of $15.5 million, or 51 cents per share, on sales of $273.6 million during the first quarter of 2013
Monday's announcement of another multimillion dollar Chinese contract attracted investors who drove up the price of the company's stock. Chart share price closed at $76.02, up $2.10, on the Nasdaq.
