May 07, 2007 Lehigh Valley, Pa.
Air Products has been awarded the contract to supply nitrogen for a new liquefied natural gas (LNG) import terminal, under construction by Dragon LNG at Milford Haven, South Wales, UK.
This is the second contract of its kind to be awarded to Air Products. In April 2005 the company was chosen to supply nitrogen for a new terminal―the first in the UK for 20 years―owned by Grain LNG Limited, a wholly-owned subsidiary of National Grid Transco, on the Isle of Grain in the Medway Estuary, UK. The terminal has capacity to import 3.3 million tons (equivalent to 4.4 billion cubic meters) of LNG per year.
The addition of the Milford Haven project, where there will be a capacity to import 6 billion cubic meters of LNG, means that Air Products is now responsible for nitrogen blending nearly 10 per cent of the UK’s natural gas consumption―113 billion cubic meters a year, for both domestic and industrial use.
Nitrogen is injected to ensure that the LNG is compatible with current natural gas specifications. The amount of nitrogen injected is determined by the specification of the imported LNG, which tends to vary according to where it has come from. This is especially important as global trading of liquefied natural gas is allowing the UK to import from more sources than ever.
For the Milford Haven project, Air Products will produce the nitrogen onsite using air separating units (ASUs). Coupled with the onsite production and storage of liquid nitrogen, a nitrogen supply will be blended into the natural gas prior to feeding into the nation’s high pressure distribution network.
Air Products will design, manufacture, own and operate the ASUs and back-up system under a long-term contract.
Alan Belk, Air Products, European business development director, Tonnage Gases, said, “We are very pleased to have won this contract and to have increased our share of this fast developing market. This is a core business for Air Products and Dragon will benefit from having its nitrogen demands managed on its behalf which will allow it to concentrate on core business activities involved in running a major LNG import terminal.”
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 and is listed in the Dow Jones Sustainability and FTSE4Good Indices. The company has annual revenues of $9 billion, operations in over 40 countries, and over 20,000 employees around the globe. For more information, visit www.airproducts.com.
 From OFGEM (British Gas and Electricity Markets Authority)
NOTE: This release may contain forward-looking statements. Actual results could vary materially, due to changes in current expectations.