January 26, 2006 Lehigh Valley, Pa.
Air Products (NYSE:APD) today announced that its new Convent, La. and Baytown, Tx. hydrogen production facilities are now operational. The two hydrogen plants are among six facilities in the U.S. and Canada that Air Products is bringing on-stream over a ten month period. These six new facilities will increase Air Products' hydrogen production capacity by 35 percent, and annual hydrogen and related syngas sales of approximately $1.3 billion by more than $400 million. The hydrogen is used by refiners to make cleaner transportation fuels and other petroleum products from heavier, sour crude feedstocks.
"Despite some of the difficulties brought on by the hurricanes, the facilities are operational very close to their original schedule. We were pleased with the construction effort, including the support from many local contractors, and our operating team is running day-to-day production," said Jeffry L. Byrne, vice president and general manager, Refining and Process Industries at Air Products.
The Convent facility, initially announced in July 2004, is designed to produce 110 million standard-cubic-feet-per-day (MMSCFD) of hydrogen from a steam methane reformer. The facility, located at the Motiva refinery, supplies the Motiva Enterprises LLC refinery in Convent and the Marathon Ashland Petroleum LLC (MAP) refinery in Garyville, La. by pipeline feed. It also provides hydrogen to Air Products' Mississippi River corridor pipeline system along a 90-mile pipeline network from Baton Rouge, La. to Norco, La.
Air Products' Baytown facility expansion was originally announced in November 2004. It is designed to produce 70 MMSCFD of hydrogen and is connected to the Air Products West Gulf Coast pipeline system. The facility supplies hydrogen to ExxonMobil's refinery and other customers on the pipeline system. The plant receives feedgas from ExxonMobil's Syngas facility and, in addition to producing hydrogen, will continue to recover other gases for use by the petrochemical industry.
Air Products also has an additional hydrogen pipeline east of New Orleans, La. Combined, Air Products has the most extensive hydrogen supply capabilities in the U.S. Gulf Coast and is the leading hydrogen supplier worldwide.
Both new hydrogen facilities operate under long-term contracts and are among over 30 supply arrangements Air Products has undertaken with refiners worldwide. The Convent 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 for hydrogen generation units 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.
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 $8.1 billion, operations in over 30 countries,and over 20,000 employees around the globe. For more information, visit www.airproducts.com.
With a workforce of about 20,000 people, Technip ranks among the top five corporations 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 operations and engineering centers and business units are located in France, Italy, Germany, the UK, Norway, Finland, the Netherlands, the USA, Brazil, Abu-Dhabi, China, India, Malaysia and Australia. In support of its activities, the Group manufactures flexible pipes and umbilicals, and builds offshore platforms in its manufacturing plants and fabrication yards in France, Brazil, the UK, the USA, Finland and Angola, and has a fleet of specialized vessels for pipeline installation and subsea construction. Technip is the leading supplier of hydrogen production facilities with more than 200 references worldwide. 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
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