IBM and Honeywell Collaborate on Innovative Solutions at Freeport LNG

IBM and Honeywell Collaborate on Innovative Solutions at Freeport LNG

Today, IBM (NYSE: IBM) announced a collaborative project with Honeywell (NYSE: HON) for the delivery of business process integration and manufacturing execution systems (MES) at the new liquefied natural gas (LNG) terminal being built by Freeport LNG Development, L.P. on Quintana Island near Freeport, Texas. The re-gas terminal will receive LNG shipments from global sources and supply natural gas to various facilities in the Texas Gulf Coast region.

After a 20-year hiatus in LNG terminal development, the Freeport LNG re-gas terminal will be one of the first new terminals in the United States. It will serve industrial and electric power generation natural gas operations between Freeport, Texas and the Houston Ship Channel, and is expected to be commissioned by the fourth quarter of 2007. The first ship is expected to be unloaded by February 2008.

IBM Global Business Services and Honeywell are providing an innovative combination of leading ERP system integration skills (IBM) and MES solutions (Honeywell) to help minimize the systems integration effort and total cost of ownership at the facility. IBM is leading the implementation of the business process integration suite of applications, as well as the integration with Honeywell’s advanced MES applications, to provide Freeport LNG with a complete terminal management system.

“In addition to our many intelligent energy solutions, this kind of teaming and collaboration is a key aspect of how IBM is helping energy clients innovate and make the right changes to compete more efficiently and profitably,” said Jay Bellissimo, IBM Global Business Services leader for the Americas Chemicals & Petroleum Industry. “Through our relationship with Honeywell, we’re addressing new opportunities in LNG around the world. LNG operators are looking for the complete system to meet the demands of the globalization of LNG as a commodity, and the complexities arising from Joint Venture assets. IBM’s deep industry experience, background in designing business processes and ERP implementation skills make us uniquely qualified to meet these needs.”

There are significant financial, logistical and operating challenges in the global value chain of LNG. LNG operators are seeking turnkey solution providers to improve capital project execution. The integration of IT, ERP, MES and process automation provide reduced cost, schedule, and technical risk on capital projects, as well as an enterprise business framework that boosts LNG value chain visibility.

Read the complete Press Release