July 19, 2004 Lehigh Valley, Pa.
Air Products and Chemicals, Inc. (NYSE:APD) announced today that it will construct a facility in Louisiana to supply hydrogen to the Motiva Enterprises LLC and Marathon Ashland Petroleum LLC (MAP) refineries, and also provide hydrogen to its Mississippi River corridor pipeline system. Producing 110 million standard-cubic-feet-per-day (MMSCFD), the hydrogen facility will be owned and operated by Air Products and is expected to be on-stream in November 2005.
The hydrogen facility, a natural gas-based steam methane reformer, will help both Motiva's Convent 225,000 barrel-per-day refinery and MAP's Garyville 255,000 barrel-per-day refinery to produce cleaner transportation fuels and other petroleum products from heavier, sour crude feedstocks. The Air Products facility will be located at the Motiva refinery and supply hydrogen by pipeline to MAP, as well as other customers along a 90-mile pipeline network from Baton Rouge to Norco, La. Air Products has an additional hydrogen pipeline in Louisiana east of New Orleans, as well as nearly 150 miles of hydrogen pipeline reaching from Texas and the Houston Ship Channel to Lake Charles, La. Combined, Air Products has the most extensive hydrogen supply capabilities in the U.S. Gulf coast.
"We are very pleased to announce this addition to our hydrogen production capability and infrastructure in Louisiana. The increased reliability represented in this new investment is critically important in meeting the needs of Motiva and Marathon Ashland Petroleum, and other refineries and customers in the Mississippi River corridor," said Scott Sherman, Air Products' vice president and general manager for Energy and Process Industries worldwide.
Louisiana Governor Kathleen Blanco said, "This kind of economic development will make Air Products' presence in Louisiana stronger. The state has supported Air Products in the past to assist their development, and I am excited to see their continued investment in our state." Air Products has extensive industrial operations in Louisiana that began with its first plant operating in 1965. In May 2004, Air Products' newest investment in Louisiana went commercial as a new 112 MMSCFD hydrogen production facility in Westlake, La. is now providing hydrogen to the pipeline network and Lake Charles area customers.
The intended supply arrangement is one of over 30 that Air Products has undertaken with refiners worldwide, and the Louisiana hydrogen facility is the 24th to be built under the global alliance between Air Products and Technip. This alliance continues to provide the worldwide refining industry with competitive technology, plus world-class safety with "over the fence" hydrogen supply. Technip provides the design and construction expertise for steam reformers while Air Products provides the gas separation technology. Air Products, through its extensive operating network, and Technip, from its large reference base, also bring effective operational and engineering knowledge to "design-in" high reliability and efficiency. The plants are operated and maintained by Air Products under long-term agreements with customers.
About Motiva Enterprises LLC
Motiva Enterprises LLC operates refineries and a terminal system, and has marketing operations that support a network of nearly 11,000 Shell and Texaco branded gasoline stations in the Eastern and Southern United States. Company assets include three refineries, capable of refining approximately 690,000 barrels per day (bpd) and ownership or partial interest in 49 products terminals. For more information, please visit www.motivaenterprises.com.
About Marathon Ashland Petroleum LLC
Based in Findlay, Ohio, MAP is the nation's fifth largest refiner with 948,000 barrels-per-day capacity in its seven-refinery system. MAP's retail marketing system comprises approximately 5,400 locations in 16 states, more than half of which are Marathon brand locations. MAP serves the Midwest and Southeast as a petroleum products marketer with 95 light product and asphalt terminals and access to about 8,400 miles of pipeline. MAP is a limited liability company 62 percent owned by Marathon Oil Company, a wholly-owned subsidiary of Marathon Oil Corporation (NYSE:MRO) and 38 percent owned by Ashland Inc. (NYSE:ASH).
About Air Products
Air Products (NYSE:APD) serves customers in technology, energy, healthcare and industrial markets worldwide with a unique portfolio of products, services and solutions, providing atmospheric gases, process and specialty gases, performance materials and chemical intermediates. 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. With annual revenues of $6.3 billion and operations in over 30 countries, the company's 18,500 employees build lasting relationships with their customers and communities based on understanding, integrity and passion. For more information, visit www.airproducts.com.
With a workforce of about 19,000 persons and annual revenues of about 5 billion euros, Technip ranks among the top five corporations worldwide in the field of oil, gas and petrochemical engineering, construction and services. Headquartered in Paris, the Group is listed in New York and Paris. The Group's main engineering and business centers are located in France, Italy, the United States, Germany, the UK, Norway, Finland, the Netherlands, Brazil, Abu-Dhabi, China, India, Malaysia and Australia. Technip is the leading supplier of hydrogen production facilities with more than 180 hydrogen plants and 200 steam methane reformers around the world. The Group has high-quality industrial and construction facilities in France, Brazil, the UK, the USA, Finland and Angola as well as a world-class fleet of offshore construction vessels. More information can be found at www.technip.com.
***NOTE: This release may contain forward-looking statements. Actual results could vary materially, due to changes in current expectations.