Praxair and Motiva Finalize Hydrogen Supply Agreement
April 01, 2003
DANBURY, Conn., April 1, 2003 — Praxair, Inc. (NYSE:PX) has finalized an agreement with Motiva Enterprises LLC for Praxair to supply high-purity hydrogen to Motiva's Port Arthur, Texas, refinery and other customers connected to its pipeline system. As part of the agreement, Praxair will build a steam-methane reformer with a capacity of 100 million cubic feet per day at Motiva’s Port Arthur refinery. Praxair currently supplies Motiva with pipeline hydrogen under a long-term product supply agreement.
Motiva will use the hydrogen for the production of low-sulfur gasoline and diesel fuels as well as high-quality lubricants.
"The Motiva project confirms Praxair's strategy to expand the Gulf Coast hydrogen business and our commitment to unmatched reliability and system capability for the future," said Dan Yankowski, vice president, South Region, for Praxair's North American Industrial Gases organization.
In 2001, Praxair announced plans to add approximately 300 million cubic feet per day (354,000 cubic meters per hour) of hydrogen capacity to its 300-mile Gulf Coast pipeline system, the largest in the world. With these expansions, Praxair's customers from Texas City, Texas, to Lake Charles, Louisiana, will have access to over 600 million cubic feet per day of hydrogen. The hydrogen will be supplied from a number of new and existing production facilities consisting of steam-methane reformers and hydrogen-recovery systems.
Praxair supplies a complete portfolio of large-volume industrial gases, cylinder gases and specialized services to refinery customers and is a leading supplier of hydrogen to customers worldwide. It operates 26 steam-methane reformers and seven major hydrogen pipeline systems that deliver more than 500 million cubic feet per day (590,00 cubic meters per hour) of hydrogen. Praxair supplies more than 50 refineries and petrochemical plants from its Gulf Coast pipeline system in Louisiana and Texas.
Motiva Enterprises LLC is an oil refining, lubricants and retail business operation owned by Shell and Saudi Refining Inc. Headquartered in Houston, Texas, Motiva refines and markets gasoline to more than 22,000 Shell-branded and Texaco-branded gasoline stations together with its affiliate Shell Oil Products US.
Praxair is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2002 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.