Air Products to Supply Additional Hydrogen for Two Gulf Coast Valero Refineries

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Jun 06, 2011, 10:00 ET

LEHIGH VALLEY, Pa., June 6, 2011 /PRNewswire/ -- Air Products (NYSE: APD), the leading global hydrogen provider, today announced that Valero Energy Corporation has awarded the company a combined additional supply of over 200 million standard cubic feet per day of hydrogen for Valero's refineries in St. Charles, Louisiana and Port Arthur, Texas. As part of this award, Air Products has also proposed development of a new world scale steam methane reformer hydrogen production facility to be located in St. Charles, which is to be on stream during the second half of 2013. The facility would be connected to Air Products' industry-leading Gulf Coast hydrogen pipeline supply network, which supplies multiple refinery and petrochemical companies in the region.

"This supply arrangement builds on our well-established relationship with Valero. We already provide hydrogen to help meet their product demands with our two steam methane reformer hydrogen production facilities in Port Arthur. This proposed new hydrogen facility would help to serve Valero's St. Charles and Port Arthur locations, and also help to meet additional demands of customers on the Air Products' pipeline system," said Wilbur Mok, vice president - North America Tonnage Gases at Air Products. "The facility will be connected to our Gulf Coast hydrogen pipeline network, which increases product supply reliability, and provides flexibility to meet increased hydrogen needs through the largest hydrogen pipeline network in the Gulf Coast."

Air Products has been supplying hydrogen via pipeline to Valero's St Charles refinery since 1997 and also to Port Arthur since 1996. Valero's hydrogen demand is increasing at both facilities with the expansion of its hydrocracking capacity.

Air Products is working toward increasing its hydrogen pipeline supply capability in the Gulf Coast to make it the world's largest hydrogen pipeline network. Air Products announced plans to construct a new 180-mile long pipeline in 2010. The new pipeline extension, which is in the project execution phase, will connect Air Products' Texas hydrogen system to the Louisiana hydrogen system. Once complete, Air Products' hydrogen pipeline supply network will stretch from the Houston Ship Channel in Texas to New Orleans, creating the world's largest hydrogen plant and pipeline supply network. This integrated pipeline system will unite over 20 hydrogen plants and over 600 miles of pipelines. It will supply the Louisiana and Texas refinery and petrochemical industries with over 1.2 billion cubic feet of hydrogen per day. The new Gulf Coast hydrogen pipeline network is expected to be operational in 2012.

Globally, Air Products' hydrogen pipeline operational expertise is evidenced by the 40 year safe operation of its network of systems. Pipelines offer a safe, robust and reliable supply of hydrogen to the refinery and petrochemical industry around the world. In addition to the Gulf Coast hydrogen pipeline system, Air Products also has hydrogen pipeline networks operating around the world in the U.S. in Southern California; in Canada in Sarnia, Ontario, and Edmonton, Alberta; and in The Netherlands in Rotterdam.

The proposed St. Charles hydrogen facility would be built through the global hydrogen alliance between Air Products and Technip. The hydrogen plant will feature the latest technology advancements to maximize energy efficiency and emissions reduction. The enhanced SMR design targets optimal heat integration and minimal loss of heat to the environment, which in turn lowers natural gas feedstock consumption. These efforts and other productivity improvements support Air Products' overall sustainability goals of reducing energy consumption and emissions.

This Air Products and Technip worldwide alliance, which has built over 30 hydrogen production facilities, continues to provide the worldwide refining industry with competitive technology and world-class safety and reliability. 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.

Hydrogen is widely used in petroleum refining processes to remove impurities found in crude oil such as sulfur, olefins and aromatics for meeting the product fuels specifications. Removing these components allows gasoline and diesel to burn cleaner and thus makes hydrogen a critical component in the production of cleaner fuels needed by modern, efficient internal combustion engines.

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. In fiscal 2010, Air Products had revenues of $9 billion, operations in over 40 countries, and 18,300 employees around the globe. For more information, visit www.airproducts.com.

About Technip

Technip is a world leader in project management, engineering and construction for the energy industry.

From the deepest Subsea oil & gas developments to the largest and most complex Offshore and Onshore infrastructures, our 23,000 people are constantly offering the best solutions and most innovative technologies to meet the world's energy challenges.

Present in 48 countries, Technip has state-of-the-art industrial assets on all continents and operates a fleet of specialized vessels for pipeline installation and subsea construction.

The Technip share is listed on Euronext Paris exchange and over the counter (OTC) in the USA. For more information, visit: www.technip.com.

***NOTE: This release may contain forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's reasonable expectations and assumptions as of the date of this release regarding important risk factors. Actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors not anticipated by management, including risk factors described in the Company's Form 10K for its fiscal year ended September 30, 2010.

SOURCE Air Products