SEOUL– South Korean energy company Hanwha Solutions Corp. said Wednesday its newly acquired tank subsidiary signed a $260 million deal with U.S. energy firm Sunbridge Energy Services to provide storage tanks for compressed natural gas (CNG).
Hanwha Cimarron signed the 10-year deal with the Texas-based Sunbridge Energy to deliver tube trailers containing dozens of vessels that can store CNG and other pressurized gases, such as hydrogen.
It is the first time Hanwha Cimarron has won a supply deal for high-pressure tanks since the firm, formerly known as Cimarron Composite, was acquired by the energy arm of Korean conglomerate Hanwha Group in December.
Hanwha Solutions said the supply deal is expected to accelerate Hanwha Cimarron’s expansion into the pressure vessel market in response to growing demand in various areas, including hydrogen, aerospace and other high-tech industries.
Sunbridge Energy delivers CNG through tube trailers to shale gas operators in the Permian Basin, the largest oil field in the U.S. The operators working there use CNG as fuel for drilling rigs.
Source: Yonhap News Agency