Air Products has been awarded the contract to supply nitrogen for a new liquefied natural gas (LNG) import terminal, under construction by Dragon LNG at Milford Haven, South Wales, UK.

This is the second contract of its kind to be awarded to Air Products. In April 2005 the company was chosen to supply nitrogen for a new terminal―the first in the UK for 20 years―owned by Grain LNG Limited, a wholly-owned subsidiary of National Grid Transco, on the Isle of Grain in the Medway Estuary, UK. The terminal has capacity to import 3.3m tons (equivalent to 4.4bn cubic meters) of LNG per year.

For the Milford Haven project, Air Products will produce the nitrogen onsite using air separating units (ASUs). Coupled with the onsite production and storage of liquid nitrogen, a nitrogen supply will be blended into the natural gas prior to feeding into the nation's high pressure distribution network.

Air Products will design, manufacture, own and operate the ASUs and back-up system under a long-term contract.

Alan Belk, Air Products, European business development director, Tonnage Gases, said, $quot;We are very pleased to have won this contract and to have increased our share of this fast developing market. This is a core business for Air Products and Dragon will benefit from having its nitrogen demands managed on its behalf which will allow it to concentrate on core business activities involved in running a major LNG import terminal.$quot;