Land contract driller Helmerich & Paine (H&P) has invested $33 million in Buenos Aries-headquartered-Galileo Technologies, a company that deploys technology to capture natural gas from any source and convert it into LNG on-site.
Galileo and H&P plan to work together to enable rollout of the technology in North America. The companies also plan to identify business development opportunities which, if successful, have the potential to reduce fuel costs and carbon emissions from power consumption on wellsites.
Well drilling and completion is an energy-intensive process and Galileo’s technology is intended to monetize natural gas from wellheads and flared, pipeline, and stranded gas by converting it into LNG. The converted LNG can be reused on site or transported and stored.
“This investment and the collaboration with H&P will contribute to continue expanding the global presence of our innovative natural gas liquefaction, compression, and regasification products and solutions, particularly in the United States where we see attractive growth opportunities,” said Osvaldo del Campo, chief executive of Galileo.
The H&P investment comes in the form of a convertible note that bears interest of 5% per annum and is due April 2027. If exercised, the note would convert into common shares of Galileo at an enterprise value of $1.35 billion.
Galileo’s technology includes its Cryobox LNG-production station and ZPTS plant for gas conditioning. Both units feature modular designs and scalable installed capacity which meets the increase in demand by incorporating units progressively. Once the LNG is produced it is stored in cryogenic iso-tanks that can be trucked to any location. According to Galileo, the liquefaction equipment at one site can be relocated within hours to a new gas-producing field when the wells at the initial site have been depleted.
