I believe you mean that water can condense. And yes, it can...however, water typically doesn't condense in such vast quantities...
I am trying to recall if the flamethrower was used before or after that scene. If it was used before, then perhaps that is water from a fire detection system.
If not, it could easily be water flowing from pipes which they xenomorph damaged as it moved through the air ducts and whatnot aboard the ship. Because you can clearly see water dropping in streams in certain areas, I am inclined to believe this.
And thus I clothe my naked villainy
With old odd ends stolen forth from holy writ
And seem a saint when most I play the devil.