The second integrated hydrogen and cogeneration plant will be constructed by Air Products at Port Arthur in Texas to supply Premcor.

Air Products have announced that is has signed a Letter of Intent to construct a new hydrogen production plant in Port Arthur, Texas to supply 110 million standard cubic feet per day (MMSCFD) of hydrogen to The Premcor Refining Group Inc. The hydrogen will be used to supply Premcor’s refinery and additional customers on Air Products’ Gulf Coast hydrogen pipeline system.

Air Products will produce 1000 megawatts of power for use by both companies and 1.2 million pounds per day of stream for Premcor’s operation. The plant that will be owned and operated by Air Products is expected to be on-stream in June 2006.

Premcor will use the hydrogen to meet national regulations to make cleaner transportation fuels. The steam and power reduction will allow Premcor to shutdown existing production assets to voluntarily reduce NOx emissions and also meet Premcor’s increased stream and power requirements associated with its new diesel hydrotreater.

This is the second Air Products hydrogen facility to serve Premcor’s Texas oil refinery. The first 105 MMSCFD hydrogen facility at Port Arthur has been supplying Premcor since 2001.

Commenting on the second hydrogen plant, Air Products’ Vice President and General Manager for Refining and Process Industries Jeffrey L. Byrne said, “We are very pleased to continue our valued relationship with Premcor and meet the refinery’s increased need for high-purity hydrogen, power and steam. We have worked very closely with Premcor to optimise the design of this facility for low-cost and reliable production of all three products”.

The new hydrogen facility will be part of Air Products’ Gulf Coast pipeline network, which extends from the Houston Ship Channel in Texas to Lake Charles, Louisiana, and from Baton Rougeto Norco Louisiana and east of New Orleans. The Pipeline supplies approximately 50 refinery and process industry customers.