- Texas Projects will Help Supply Two Signed, Long-Term CO
Agreements.
- Projects will Add Over 70 Million Standard Cubic Feet Per
Day (MMSCFD) of CO capacity.
- Both Plants will be Connected to Air Products World's
Largest CO Pipeline Network.
LEHIGH
VALLEY, Pa., May 8, 2023
/PRNewswire/ -- Air Products (NYSE: APD) today announced it will
build, own and operate two new world-scale carbon monoxide (CO)
production facilities in Texas.
The facilities in La Porte and
Texas City will produce a combined
over 70 million standard cubic feet per day (MMSCFD) of CO and will
be connected to Air Products' existing Gulf Coast -- and the
world's largest -- CO pipeline network.
Air Products is also announcing new long-term CO supply
contracts with LyondellBasell (NYSE: LYB) and Eastman Chemical
Company (NYSE: EMN). Both customers will be connected to and draw
significant additional product via these new facilities from Air
Products' expanding CO pipeline network and will benefit from the
additional CO supply reliability from the new La Porte and Texas
City facilities.
"We are pleased to announce these new and innovative projects.
The new assets and agreements greatly expand Air Products' already
strong leadership CO position in the Gulf Coast. These strategic
investments will provide additional growth and enhanced supply
reliability to our business and for our valued customers. We will
continue to seek ways to continually enhance the robustness of our
value-added and leading pipeline network," said Dr. Samir J. Serhan, Air Products' Chief Operating
Officer.
At La Porte, Air Products will
produce over 30 MMSCFD of CO, with a vast majority to be supplied
to LyondellBasell. The new facility is expected to be onstream in
2024. Air Products is also announcing today a long-term agreement
to purchase synthesis gas (syngas) from existing LyondellBasell
natural gas, partial oxidation units, which will be used as part of
the CO production feed.
LyondellBasell will realize Scope 1 emissions reductions as part
of this CO project.
LyondellBasell and Air Products are also working collaboratively on
a carbon dioxide recovery project. Together these projects will
support progress LyondellBasell is making towards its
sustainability goals as stated in its 2022 Sustainability
Report.
At Texas City, the new unit
will produce over 40 MMSCFD of CO, with a vast majority to be
supplied to Eastman. Once onstream in 2026, the CO facility will be
the world's largest single source of CO production.
As part of Air Products' continuous improvement efforts in
customer reliability, the facility will be incorporated into the
company's existing CO pipeline network with the addition of a new
35-mile connection to Texas
City.
About Air Products
Air Products (NYSE: APD) is a world-leading industrial gases
company in operation for over 80 years focused on serving energy,
environmental, and emerging markets. The Company has two growth
pillars driven by sustainability. Air Products' base business
provides essential industrial gases, related equipment and
applications expertise to customers in dozens of industries,
including refining, chemicals, metals, electronics, manufacturing,
and food. The Company also develops, engineers, builds, owns and
operates some of the world's largest industrial gas and
carbon-capture projects, supplying world-scale clean hydrogen for
global transportation, industrial markets, and the broader energy
transition. Additionally, Air Products is the world leader in the
supply of liquefied natural gas process technology and equipment,
and globally provides turbomachinery, membrane systems and
cryogenic containers.
The Company had fiscal 2022 sales of $12.7 billion from operations in over 50
countries and has a current market capitalization of over
$65 billion. More than 21,000
passionate, talented and committed employees from diverse
backgrounds are driven by Air Products' higher purpose to create
innovative solutions that benefit the environment, enhance
sustainability and reimagine what's possible to address the
challenges facing customers, communities, and the world. For more
information, visit www.airproducts.com or follow us on
LinkedIn, Twitter, Facebook or Instagram.
Air Products Cautionary Note Regarding Forward-Looking
Statements
This release contains "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
expectations and assumptions as of the date of this release and are
not guarantees of future performance. While forward-looking
statements are made in good faith and based on assumptions,
expectations and projections that management believes are
reasonable based on currently available information, actual
performance and financial results may differ materially from
projections and estimates expressed in the forward-looking
statements because of many factors, including the risk factors
described in our Annual Report on Form 10-K for the fiscal year
ended September 30, 2022 and other
factors disclosed in our filings with the Securities and Exchange
Commission. Except as required by law, we disclaim any obligation
or undertaking to update or revise any forward-looking statements
contained herein to reflect any change in the assumptions, beliefs
or expectations or any change in events, conditions or
circumstances upon which any such forward-looking statements are
based.
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SOURCE Air Products