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Air Products to Supply LNG Technology to Technip for China Plant


Project Highlights Company’s Mid-Scale LNG Market Capabilities

LEHIGH VALLEY, Pa. – Air Products (NYSE: APD) today announced it has signed an agreement with Technip to supply Air Products’ proprietary liquefied natural gas (LNG) process technology and equipment for an LNG project in Yinchuan, China. Air Products’ technology will be vital for two liquefaction trains each producing 400,000 tons per year of LNG for Ningxia Hanas Natural Gas Company, Ltd. The units are targeted to be completed in the second half of 2011.

“This project is an important one for Air Products for several reasons. First, it marks our entry into the Chinese LNG production market. At the same time, it demonstratesthe capabilities of our technology in terms of LNG production scale and reinforces our commitment and presence to serve all spectrums of the LNG market, from baseload to peak-shaving, and now to the mid-scale LNG market,” said Jim Solomon, director–LNG at Air Products.

Under the agreement, Air Products’ single mixed refrigerant process technology, as well as engineering, design and manufacturing of the heat exchanger equipment for the liquefaction sections, will be supplied for each train. The process uses Air Products’ proprietary wound coil main cryogenic heat exchanger technology. This process is particularly well suited for regional and mid-size LNG production. The Yinchuan LNG plant will be the largest of its kind in China. The LNG produced will be distributed to the Chinese market to help meet the growing demand for clean energy.

A majority of the total worldwide LNG is produced with Air Products’ technology. Air Products has designed, manufactured and exported over 75 LNG heat exchangers from its Wilkes-Barre, Pa., United States facility over the last four decades. In support of the LNG industry, Air Products provides process technology and key equipment for the heart of the natural gas liquefaction process, and also nitrogen plants for the base-load LNG facility, as well as process technology and equipment for small and mid-sized LNG plants, floating LNG plants and LNG peak shavers. Upstream, Air Products provides both nitrogen and natural gas dehydration membrane systems for offshore platforms. Downstream, Air Products provides dry inert gas generators for LNG carriers, shipboard membrane nitrogen systems, and land-based membrane and cryogenic nitrogen systems for LNG import terminals.

News of this LNG agreement follows closely two recent Air Products industrial gas projects in China announced in September. An Air Products joint venture company based in Sichuan, China has signed an agreement to build an air separation unit (ASU) for PetroChina Company Limited, one of the largest oil and gas companies in the world. The ASU will supply oxygen and nitrogen to PetroChina’s main refinery and ethylene complex in Sichuan, as well as produce liquid products for Air Products’ merchant gases customers in the Chengdu area. The ASU is to be on-stream in late 2011. Air Products also released plans to purchase and operate four existing air separation units and build a new ASU, to be on-stream in March 2011, to supply industrial gases to Xingtai Iron and Steel Corporation, Ltd., one of China’s largest specialty steel manufacturers located in Hebei province, China.


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