Praxair Expands Hydrogen Pipeline Capacity
DANBURY, Conn., May 2, 2002 -- In response to an increased demand for hydrogen by refining customers, Praxair, Inc. (NYSE: PX) has doubled the capacity of its hydrogen pipeline between Houston and Texas City, Texas. Praxair and Valero Logistics Operations L.P. have exchanged pipeline assets of different capacities in order to enhance their respective hydrogen systems.
"This agreement allows Praxair to increase its ability to supply hydrogen to key refining customers, such as Valero, in Texas City," said Dan Yankowski, Praxair’s vice president of the U.S. South Region. "It’s another step in Praxair’s ongoing strategy to help the refining community to meet new EPA standards for low-sulfur gasoline and diesel fuel. Increased pipeline capacity, coupled with our previously announced plans to build two new hydrogen plants, significantly strengthens our capabilities in meeting both current contractual commitments as well as future demand."
Praxair's 300-mile Gulf Coast hydrogen pipeline system is already connected to a substantial portion of U.S. refining capacity. Refiners’ demand for hydrogen has grown by 10 to 15 percent per year over the past five years. The rate is expected to increase to nearly 20% per year based on the need for clean-burning, low-sulfur gasoline and diesel fuels to comply with new Environmental Protection Agency regulations coming into effect in 2004 and 2006.
In October 2001, Praxair announced plans to build two world-class hydrogen plants along its U.S. Gulf Coast pipeline system. The combined estimated capacity of the new plants will be 200 million cubic feet per day. The first startup is scheduled for early 2004, subject to a number of regulatory reviews.
Praxair supplies a complete portfolio of large-volume industrial gases, cylinder gases and specialized services to its refinery customers and is a leading supplier of hydrogen worldwide. It operates 22 steam methane reformers and seven major hydrogen pipeline systems that deliver over 500 million cubic feet per day (14 million cubic meters) of hydrogen to more than 50 refineries and petrochemical plants.
Praxair is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2001 sales of $5.1 billion. The company produces, sells and distributes atmospheric and process gases, and high-performance surface coatings. Praxair products, services and technologies bring productivity and environmental benefits to a wide variety of industries, including aerospace, chemicals, food and beverage, electronics, energy, healthcare, manufacturing, metals and others. More information on Praxair is available on the Internet at www.praxair.com.
"This agreement allows Praxair to increase its ability to supply hydrogen to key refining customers, such as Valero, in Texas City," said Dan Yankowski, Praxair’s vice president of the U.S. South Region. "It’s another step in Praxair’s ongoing strategy to help the refining community to meet new EPA standards for low-sulfur gasoline and diesel fuel. Increased pipeline capacity, coupled with our previously announced plans to build two new hydrogen plants, significantly strengthens our capabilities in meeting both current contractual commitments as well as future demand."
Praxair's 300-mile Gulf Coast hydrogen pipeline system is already connected to a substantial portion of U.S. refining capacity. Refiners’ demand for hydrogen has grown by 10 to 15 percent per year over the past five years. The rate is expected to increase to nearly 20% per year based on the need for clean-burning, low-sulfur gasoline and diesel fuels to comply with new Environmental Protection Agency regulations coming into effect in 2004 and 2006.
In October 2001, Praxair announced plans to build two world-class hydrogen plants along its U.S. Gulf Coast pipeline system. The combined estimated capacity of the new plants will be 200 million cubic feet per day. The first startup is scheduled for early 2004, subject to a number of regulatory reviews.
Praxair supplies a complete portfolio of large-volume industrial gases, cylinder gases and specialized services to its refinery customers and is a leading supplier of hydrogen worldwide. It operates 22 steam methane reformers and seven major hydrogen pipeline systems that deliver over 500 million cubic feet per day (14 million cubic meters) of hydrogen to more than 50 refineries and petrochemical plants.
Praxair is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2001 sales of $5.1 billion. The company produces, sells and distributes atmospheric and process gases, and high-performance surface coatings. Praxair products, services and technologies bring productivity and environmental benefits to a wide variety of industries, including aerospace, chemicals, food and beverage, electronics, energy, healthcare, manufacturing, metals and others. More information on Praxair is available on the Internet at www.praxair.com.
