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News ReleaseAir Products To Construct Second Integrated Hydrogen And Cogeneration Plant At Port Arthur, Texas To Supply Premcor

April 21, 2005 Lehigh Valley, Pa.

Air Products announced today that it has signed a Letter of Intent to construct a new hydrogen production plant in Port Arthur, Texas to supply 110 million standard cubic feet per day (MMSCFD) of hydrogen to The Premcor Refining Group Inc.'s refinery, and to additional customers on Air Products' Gulf Coast hydrogen pipeline system. Air Products will also produce 100 megawatts of power for use by both companies and 1.2 million pounds per day of steam for Premcor's operation. The plant, to be owned and operated by Air Products, is expected to be on-stream in June 2006.

Premcor will use the hydrogen supplied by Air Products to make cleaner transportation fuels mandated by federal vehicle emissions control regulations. The steam and power production will allow Premcor to shutdown existing production assets to voluntarily reduce NOx (nitrogen oxides) emissions and also meet Premcor's increased steam and power requirements associated with its new diesel hydrotreater. This is the second Air Products hydrogen facility to serve Premcor's Texas oil refinery. Air Products' 105 MMSCFD hydrogen facility has been supplying Premcor at the Port Arthur refinery since 2001.

"We are very pleased to continue our valued relationship with Premcor and meet the refinery's increased need for high-purity hydrogen, power and steam. We have worked very closely with Premcor to optimize the design of this facility for low-cost and reliable production of all three products," said Jeffry L. Byrne, Air Products' vice president and general manager for Refining and Process Industries.

The new hydrogen facility will be part of Air Products' Gulf Coast pipeline network, which extends from the Houston Ship Channel in Texas to Lake Charles, La., and from Baton Rougeto Norco, La., and east of New Orleans. This pipeline network provides very highly-reliable hydrogen supply to approximately 50 refinery and process industry customers. The Port Arthur project is one of three hydrogen facilities currently under engineering and construction by Air Products in the Gulf Coast. The others include a 110 MMSCFD facility in Convent, La., and a 70 MMSCFD expansion in Baytown, Tex., both of which are connected to the Gulf Coast pipeline network. "These three new projects will increase our Gulf Coast pipeline system capacity to over 900 MMSCFD per day of hydrogen. We will continue to increase the size of our Gulf Coast hydrogen system in a manner that is consistent with the needs of our key refining and petrochemical customers," said Byrne.

The intended supply arrangement is one of over 30 that Air Products has undertaken with refiners worldwide, and the Texas hydrogen facility is the 26th 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 Premcor

The Premcor Refining Group Inc. is the principle operating subsidiary of Premcor Inc. (NYSE: PCO), one of the largest independent petroleum refiners and marketers of unbranded transportation fuels and heating oil in the United States. More information can be found at

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 and is listed in the Dow Jones Sustainability and FTSE4Good Indices. The company has annual revenues of $7.4 billion, operations in over 30 countries, and nearly 20,000 employees around the globe. For more information, visit

About Technip

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

NOTE: This release may contain forward-looking statements. Actual results could vary materially, due to changes in current expectations.

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    Air Products and Chemicals, Inc.
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    Air Products and Chemicals, Inc.
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