Air Products Wins LNG Technology and Equipment Order for Maryland Facility

Cove Point to be Site of Air Products' First-Ever Major LNG Heat Exchanger to Operate in the U.S.

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Apr 29, 2013, 11:00 ET

LEHIGH VALLEY, Pa., April 29, 2013 /PRNewswire/ -- Air Products (NYSE: APD), which has shipped 100 liquefied natural gas (LNG) heat exchangers to some of the most remote natural gas fields around the world, today announced that one of its future orders will have a much shorter travel time to its destination. Air Products, the global leader in LNG technology and equipment, has received its first-ever major LNG heat exchanger order for a liquefaction project based in the United States.

Air Products will supply its LNG proprietary C3MR^TM liquefaction technology and equipment to a joint venture of IHI E&C International Corporation and Kiewit Corporation, for Dominion's (NYSE: D) major liquefaction project to be constructed at the site of Dominion's existing Cove Point LNG import facility at Lusby, Md. Air Products' MCR^® Main Cryogenic Heat Exchanger will be installed at the heart of the proprietary propane pre-cooled mixed refrigerant liquefaction process. The Dominion Cove Point liquefaction process will be designed to produce 5.25 million tons per year of LNG and is to be operational in 2017.

"We have provided our LNG technology and equipment to baseload LNG projects around the world, but this will be our first large-scale order to be placed and operating in the U.S. Cove Point will be a major liquefaction facility and we are pleased that our industry leading expertise has been selected for this project. We look forward to further involvement in the U.S. export market as future projects develop," said David J. Taylor, vice president – Energy Businesses at Air Products.

Air Products has been involved in previous activities at Cove Point. In the late 1970's the company played a major role in the dry-out and initial cooldown of piping and equipment at the Cove Point facility. In 1994, Air Products supplied a small LNG re-liquefier. Air Products also played a role in the re-commissioning of the LNG plant in 2003. Over the years, Air Products has also supplied three nitrogen generators, related equipment, and other services for LNG handling at Cove Point.

A majority of total worldwide LNG is produced with Air Products' technology. Air Products has now designed, manufactured and exported 100 coil wound heat exchangers for LNG projects around the globe over the last four decades. To address forecasted growth in the LNG industry, Air Products is currently constructing a new manufacturing facility at Port Manatee, Manatee County, Fla. The new manufacturing facility will serve to double the company's present capacity at its Wilkes-Barre, Pa. facility. The deepwater Port Manatee site will enable Air Products to manufacture even larger heat exchangers to enhance economy of scale as demanded by the LNG industry. The facility will be operational by the end of 2013. Air Products will continue operations at its original Wilkes-Barre, Pa. LNG heat exchanger manufacturing facility.

In support of the LNG industry, Air Products provides process technology and key equipment for the heart of the natural gas liquefaction process for large export plants, small and mid-sized LNG plants, floating LNG plants and LNG peak shavers. 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, and land-based membrane and cryogenic nitrogen systems for LNG import terminals and base-load LNG plants.

About Air Products

Air Products (NYSE: APD) provides atmospheric, process and specialty gases; performance materials; equipment; and technology. For over 70 years, the company has enabled customers to become more productive, energy efficient and sustainable. More than 20,000 employees in over 50 countries supply innovative solutions to the energy, environment and emerging markets. These include semiconductor materials, refinery hydrogen, coal gasification, natural gas liquefaction, and advanced coatings and adhesives. In fiscal 2012, Air Products had sales approaching $10 billion. For more information, visit www.airproducts.com.

About Dominion

Dominion is one of the nation's largest producers and transporters of energy, with a portfolio of approximately 27,500 megawatts of generation, 11,000 miles of natural gas transmission, gathering and storage pipeline, and 6,300 miles of electric transmission lines. Dominion operates one of the nation's largest natural gas storage systems with 947 billion cubic feet of storage capacity and serves retail energy customers in 15 states. For more information about Dominion, visit the company's website at www.dom.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, 2012.

SOURCE Air Products