Air Products (NYSE:APD) announced today that its subsidiary, Air Products Canada Ltd., will construct a plant to supply hydrogen for the Suncor Energy Products, Inc. and Shell Canada Products refineries located in Sarnia, Ontario, Canada. Producing in excess of 80 million standard-cubic-feet-per-day (MMSCFD), the hydrogen production plant will be owned and operated by Air Products Canada Ltd. and is expected to be operational in May 2006.
The hydrogen production facility, a natural gas-based steam methane reformer, will help both Suncor’s 85,000 barrel-per-day refinery and Shell’s 76,000 barrel-per-day refinery to produce low sulphur transportation fuels and other petroleum products. The Air Products facility will be located on a part of the Shell Manufacturing Centre land and supply hydrogen by pipeline to Suncor.
“Sarnia is one of three key Canadian refining centers and Air Products is pleased to move forward in meeting the hydrogen needs of Suncor and Shell. Combined with the recent announcement of our plant in Edmonton, we are now able to serve this second key refining center with high reliability hydrogen supply, ” said Scott Sherman, Air Products’ vice president and general manager for Energy and Process Industries worldwide. “Canadian refiners have increasing hydrogen demands, which will continue to grow as more oil sands crude is processed. We are very pleased to be able to participate in that growth.”
“Building a single hydrogen plant that serves multiple customers creates economic and environmental benefits for our companies. In an increasingly competitive environment, this deal represents an innovative and efficient approach to how we do our business,” said Marc Mageau, general manager at Shell’s Sarnia Manufacturing Centre.
Air Products, in March 2004, announced plans for a 71 MMSCFD hydrogen production plant to be built in Edmonton, Alberta, Canada, to be on-stream in April 2006, as well as plans for a second larger hydrogen production facility to be located in the same region and on-stream in 2008 to meet anticipated growth.
The intended Sarnia supply arrangement is one of over 30 that Air Products has undertaken with refiners worldwide, and the Canadian hydrogen facility is the 25th to be built under the global alliance between Air Products and Technip. This alliance continues to provide the worldwide refining industry with competitive technology, plus world-class safety with “over the fence” hydrogen supply. 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. The plants are operated and maintained by Air Products under long-term agreements with customers.
About Suncor Energy Products
Suncor Energy Products Inc. is a wholly-owned subsidiary of Suncor Energy Inc., a Canadian integrated energy company. In addition to a refinery in Sarnia, Suncor Energy Products has a network of 281 Sunoco-branded retail and Fleet Fuel cardlock sites and has a 50 per cent joint venture interest in over 200 Pioneer and UPI retail sites. Suncor Energy Products Inc. manufactures, distributes and markets transportation fuels, heating oils and petrochemicals primarily in Ontario. For more information, see the Sunoco website at www.sunoco.ca.
About Shell Canada Products
Shell Canada Products manufactures, distributes and markets refined petroleum products across Canada. Shell’s three refineries convert crude oil into low sulphur gasoline and diesel fuel, aviation fuels, solvents, lubricants, asphalt and heavy fuel oils. Shell products are supplied to retail, commercial road transport markets through Shell’s Canada-wide network of Shell and private-brand retail and cardlock sites. More information can be found at www.shell.ca.
About Air Products
Air Products (NYSE:APD) serves customers in technology, energy, healthcare and industrial markets worldwide with a unique portfolio of products, services and solutions, providing atmospheric gases, process and specialty gases, performance materials and chemical intermediates. 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. With annual revenues of $6.3 billion and operations in over 30 countries, the company’s 18,500 employees build lasting relationships with their customers and communities based on understanding, integrity and passion. For more information, visit www.airproducts.com.
With a workforce of about 19,000 persons and annual revenues of about 5 billion euros, Technip ranks among the top five corporations worldwide in the field of oil, gas and petrochemical engineering, construction and services. Headquartered in Paris, the Group is listed in New York and Paris. The Group’s main engineering and business centers are located in France, Italy, the United States, Germany, the UK, Norway, Finland, the Netherlands, Brazil, Abu-Dhabi, China, India, Malaysia and Australia. Technip is the leading supplier of hydrogen production facilities with more than 180 hydrogen plants and 200 steam methane reformers around the world. The Group has high-quality industrial and construction facilities in France, Brazil, the UK, the USA, Finland and Angola as well as a world-class fleet of offshore construction vessels. More information can be found at www.technip.com.
***NOTE: This release may contain forward-looking statements. Actual results could vary materially, due to changes in current expectations.
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