Set to complement its Gulf Coast pipeline supply, Air Products has announced a long-term agreement with Enterprise Products Operating LLC to expand the hydrogen supply relationship between the two companies.

Under the agreement, Air Products will build, own, and operate a 40 million standard cubic feet per day (MMSCFD) hydrogen production facility to process a hydrogen-rich off-gas stream from a new propane dehydrogenation (PDH) facility that Enterprise is currently constructing in Mont Belvieu, Texas.

This will increase hydrogen supply for refinery and petrochemical customers connected to Air Products’ vast Gulf Coast Connection Pipeline System.

The new PDH plant is scheduled to begin service in the third quarter of 2015.

“We are pleased to expand the long-term relationship we have with Enterprise,” said Wilbur Mok, Vice-President – North America Tonnage Gases at Air Products. “This hydrogen source enhances our ability to meet the growing demand of our customers on our pipeline, and it helps increase the supply reliability and flexibility of our system.”

“The established pipeline system was an asset in maximising the value of this product since it enables us to purchase more off-gas during the life of the contract as we continue to meet our customers’ growing demand.”

Mok pointed to a recent Gulf Coast refinery contract expansion with increased hydrogen supply of potentially up to 50 MMSCFD as one of the indications of the growing needs of the system.

Enterprise is a wholly-owned subsidiary of Enterprise Products Partners L.P. Air Products has been successfully processing off-gas at Enterprise’s Mont Belvieu complex since 1994, servicing an existing facility.

The new Air Products facility will use the company’s proven pressure swing adsorption technology