Air Products signed a long-term agreement with Enterprise Products to increase hydrogen supply for refinery and petrochemical customers connected to Air Products vast Gulf Coast connection pipeline system.
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 Enterprise is currently constructing in Mont Belvieu, Texas.
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 of tonnage gases in North America for 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 maximizing 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.