Air Products Gulf Coast Pipeline Fills Additional Hydrogen Requirement
Air Products (NYSE: APD), the leading global hydrogen provider, today announced a long-term agreement with Motiva Enterprises LLC for an additional supply of hydrogen to be used by Motiva’s Convent, Louisiana refinery. The hydrogen supply, which has already commenced, is from Air Products’ industry-leading Gulf Coast hydrogen pipeline supply network that serves multiple refinery and petrochemical companies in the region. The agreement includes the ability for Air Products to direct some of the hydrogen product supplied to Motiva’s Convent Refinery to other Motiva refineries along Air Products’ pipeline network in both Texas and Louisiana.
“Having a highly reliable pipeline supply capability already in place was important to this contract. We have supplied Motiva’s Convent facility for years and have demonstrated our ability to reliably supply product to the refinery. The additional flexibility in supply options available to customers when we connect the Texas and Louisiana hydrogen pipelines creates a lot of value. As the market leader we are always working to be responsive to customers’ additional hydrogen demand,” said Wilbur Mok, vice president - North America Tonnage Gases at Air Products.
Air Products has been supplying hydrogen to Motiva at Convent in part from an on-site steam methane reformer facility since 2006. The additional hydrogen supply will come directly from Air Products’ Gulf Coast pipeline supply network. Currently, Air Products operates hydrogen pipelines in both Texas and Louisiana. Work is underway to connect the two systems to make it the world’s largest hydrogen plant and pipeline supply network.
Air Products announced plans to construct a new 180-mile long pipeline in 2010. The new pipeline extension, which is in the project execution phase, will connect Air Products’ Texas hydrogen system to the Louisiana hydrogen system. Once complete, Air Products’ hydrogen pipeline supply network will stretch from the Houston Ship Channel in Texas to New Orleans. This integrated pipeline system will unite over 20 hydrogen plants and over 600 miles of pipelines. It will supply the Louisiana and Texas refinery and petrochemical industries with over 1.2 billion cubic feet of hydrogen per day. The new Gulf Coast hydrogen pipeline network is expected to be operational in 2012.
This is the second recent announcement of new hydrogen supply agreements sourced from Air Products’ Gulf Coast pipeline supply network. Yesterday, Air Products announced the long-term supply of hydrogen to be used at Shell’s Deer Park, Texas refinery beginning in mid-2013.
Globally, Air Products’ hydrogen pipeline operational expertise is evidenced by the 40 year safe operation of its network of systems. Pipelines offer a safe, robust and reliable supply of hydrogen to the refinery and petrochemical industry around the world. In addition to the Gulf Coast hydrogen pipeline system, Air Products also has hydrogen pipeline networks operating around the world in the U.S. in Southern California; in Canada in Sarnia, Ontario, and Edmonton, Alberta; and in The Netherlands in Rotterdam.
Hydrogen is widely used in petroleum refining processes to remove impurities found in crude oil such as sulfur, olefins and aromatics to meet the product fuels specifications. Removing these components allows gasoline and diesel to burn cleaner and thus makes hydrogen a critical component in the production of cleaner fuels needed by modern, efficient internal combustion engines.
Air Products (NYSE:APD) serves customers in industrial, energy, technology and healthcare markets worldwide with a unique portfolio of atmospheric gases, process and specialty gases, performance materials, and equipment and services. Founded in 1940, Air Products has built leading positions in key growth markets such as semiconductor materials, refinery hydrogen, home healthcare services, natural gas liquefaction, and advanced coatings and adhesives. The company is recognized for its innovative culture, operational excellence and commitment to safety and the environment. In fiscal 2010, Air Products had revenues of $9 billion, operations in over 40 countries, and 18,300 employees around the globe. For more information, visit www.airproducts.com.
NOTE: This release may contain forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s reasonable expectations and assumptions as of the date of this release regarding important risk factors. Actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors not anticipated by management, including risk factors described in the Company’s Form 10K for its fiscal year ended September 30, 2010.
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