A recent comment from a Honeywell executive highlights two very different stories unfolding for the company: a long, cautious road in Venezuela and a booming, sold-out business in Liquefied Natural Gas (LNG).
The situation in Venezuela is best described as a slow thaw. The executive mentioned that any significant growth is on a 3-to-4-year cycle. This timeline makes sense when we look at the recent policy changes. First, in February 2026, the U.S. Treasury's Office of Foreign Assets Control (OFAC) issued new general licenses. This was a critical step, as it allowed major energy companies like Chevron to resume operations in Venezuela. This unlocked the door for Honeywell to begin assessing the situation and working with partners on the ground.
However, this doesn't mean a sudden rush of activity. The U.S. government has also signaled it will control Venezuelan oil sales 'indefinitely.' This policy acts as a brake, ensuring any ramp-up is gradual and heavily monitored. Furthermore, Venezuela's energy infrastructure has suffered from years of underinvestment and operational stops and starts, meaning significant maintenance and compliance work is needed before growth can accelerate. This is why a multi-year horizon is a realistic expectation.
In stark contrast, Honeywell's LNG business is firing on all cylinders. The executive stated it is 'essentially sold out for the next two and a half years,' meaning its delivery slots are booked solid through late 2028. This is driven by a massive global 'LNG wave' set to begin in 2026, with a surge of new supply coming online from the U.S., Canada, and Qatar. Energy developers, anticipating this wave, placed their orders for critical liquefaction technology and equipment years in advance.
The foundation for this success was laid in late 2024, when Honeywell acquired Air Products' LNG technology and equipment business. This move significantly expanded its manufacturing capacity and market position just in time to capture the surging demand. By early 2026, the company had already reported a record backlog of over $37 billion, confirming that the new capacity was quickly filled. The 'sold out' comment is the logical outcome of this well-timed acquisition meeting a global demand surge.
- Glossary
- OFAC (Office of Foreign Assets Control): The U.S. Treasury department agency that administers and enforces economic and trade sanctions.
- LNG (Liquefied Natural Gas): Natural gas that has been cooled down to liquid form for ease and safety of non-pressurized storage or transport.
- General License (GL): An authorization issued by OFAC to permit certain transactions or activities that would otherwise be prohibited by sanctions.