Air Water has started to produce in Vancouver, Canada the LNG tank containers of which business Air Water has been enjoying with a lion’s share in the domestic market, aiming to respond to the demand in the Canadian and North American market where there exists the very base to develop natural gases including shale gas now.

On June 2, 2014, Air Water Plant & Engineering (AWP) established a joint venture to produce and sell LNG tanks and containers in North America named “Hitachi High-Tech AW Cryo.” (HTAW) in Vancouver in partnership with Hitachi High Technologies. With a capital of 2.2 million Canadian Dollars, the investment is shared by Hitachi High-Tech Group for 66% (consisting of Hitachi High-Tech for 51% and Hitachi High Technologies America for 15%) and AWP for 34%. The JV is planning to sell its products to the medium and small-sized energy supplying companies and logistics majors of North America, making the most of Hitachi High-Tech’s marketing expertise, sales know-how and network as well as AWP’s foremost domestic production technologies in the field of LNG transportation and related equipment. The sales amount is targeted at 12 billion yen in 2020.

In the natural gas market in North America, the price has dropped due to the increase of the LNG production originated by the “shale gas revolution,” which has expended demand in not only the major consumers like large-scale power plants or petro-chemical industries, but also medium or small-sized users like small power plants, LNG locomotives and LNG automobiles.

Hideaki Tsuchiya, director of AWP described the current natural gas market of North America, saying “Until the development of shale gas there had been no concept to liquefy natural gas for transportation. Since the advent of shale gas, however, the liquefied transportation has proved to be much more cost-effective than the other energies (originated in crude oil) and has turned out to be extended to the regional consumers and even small users to whom there were not connected with pipeline facilities. It is followed now by the recent requirements for the construction of medium-sized LNG plants in the neighboring areas and the consequent need for means of trucks, railroads and ships to transport a medium or small volume of natural gas.”

Hitachi High-Tech which took a particular note of the medium and small LNG market of North America with extraordinary speed three years ago, and has ever since been looking for a Japanese partner Hitachi High-Tech eventually singled out AWP for contact which is No. 1 manufacturer of LNG transporting equipment having sold more than 300 units with its proven technologies and high reputation.

Regarding the target of 12 billion yen posted by HTAW, Tsuchiya director said, “It is essential for HTAW how to establish technologies of low-cost, high quality and mass production.”