June 17, 2009 Lehigh Valley, Pa.
Air Products (NYSE: APD) today announced that it signed an agreement with Saipem to provide its proprietary process technology and main cryogenic heat exchanger for Sonatrach’s GNL3Z liquefied natural gas (LNG) project in Arzew, Algeria. Sonatrach will produce 4.7 million metric tons per year (mmtpy) of LNG, making the Arzew facility train the largest single LNG producer in Algeria. Air Products’ LNG technology and equipment, which produces the largest majority of the total worldwide LNG, is to be delivered to the western Mediterranean port site by October 2010.
Saipem, in joint venture with Chiyoda of Japan, is the contractor on the project for Sonatrach, the national energy company of Algeria. Air Products will be providing the GNL3Z LNG project its liquefaction process technology and its MCR® main cryogenic heat exchanger, which is the heart of the natural gas liquefaction process. This proprietary Air Products process is the propane pre-cooled mixed refrigeration process with SplitMR® machinery configuration. This novel LNG process is currently in operation globally in four LNG trains and will be employed at an additional five LNG trains now under construction around the world. Air Products has already delivered its main cryogenic heat exchanger equipment to these five projects.
This is the second timein a little more than a year that Air Products will supply its proprietary technology to an LNG project in Algeria, having previously announced in 2008 its involvement with the 4.5 mmtpy Sonatrach facility being constructed at Skikda. “We are pleased to be working with Saipem on this project for Sonatrach. Air Products and Sonatrach have worked together on LNG and other projects for over three decades. To be working on what will be the largest-ever LNG projects in Algeria at Arzew and Skikda demonstrates the confidence Sonatrach has in the performance and reliability of our propriety technology and equipment,” said Jim Solomon, director–LNG at Air Products. During this greater than 30 year time span, Air Products’ technology has now been selected by Sonatrach in the development of 14 LNG trains in Algeria. Air Products and Sonatrach also participate in a helium joint venture at Arzew.
Air Products has designed, manufactured,and exported over 80 LNG heat exchangers from its Wilkes-Barre, Pa. facility over the last 30 years. In support of the LNG industry, Air Products’ involvement reaches beyond process technology, key equipment, and nitrogen plants for base-load LNG facilities. 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, land-based membrane and cryogenic nitrogen systems for LNG import terminals, and LNG peak shavers.
About Air Products
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. Air Products had fiscal 2008 revenues of $10.4 billion, operations in over 40 countries, and 21,000 employees around the globe. For more information, visit www.airproducts.com.
Saipem, 43% owned by Eni, is organised in three Business Units: Offshore, Onshore and Drilling, with a strong bias towards oil & gas related activities in remote areas and deepwater. Saipem is a leader in the provision of engineering, procurement, project management and construction services with distinctive capabilities in the design and the execution of large scale offshore and onshore projects and technological competences such as gas monetisation and heavy oil exploitation. For more information on Saipem, visit www.saipem.eni.it.
Sonatrach is the Algerian company of research, exploitation, transportation by pipeline, processing and marketing of hydrocarbons and their derivatives. It is also involved in other sectors such as power generation, new and renewable energy and desalination of seawater. It carries out its business in Algeria and throughout the world where opportunities arise. Sonatrach is first on the African continent, is ranked 12th among world oil companies, is the 2nd largest exporter of LNG and LPG and, 3rd largest exporter of natural gas. Its activities account for approximately 30% of the GNP of Algeria. Sonatrach employs 120,000 people across the Group. For more information on Sonatrach, visit www.sonatrach-dz.com.
NOTE: This release may contain forward-looking statements. Actual results could vary materially, due to changes in current expectations.