Air Products to Participate with Eastman Chemical in Gulf Coast Gasification Project
July 27 2007 - 7:10AM
PR Newswire (US)
LEHIGH VALLEY, Pa., July 27 /PRNewswire/ -- Air Products (NYSE:APD)
today announced the signing of a Letter of Intent with Eastman
Chemical, Inc. (NYSE:EMN) to be a significant participant in a
petroleum coke fed gasification project planned by Eastman in the
Gulf Coast. In the project, which will be one of the first major
solid-fuel gasification facilities in the Gulf Coast, Air Products
will market hydrogen produced by the operation to its industry
leading Gulf Coast hydrogen supply pipeline network, and construct
and operate new world-class air separation units to produce over
7,000 tons per day (TPD) of oxygen, essential to the gasifier
operation. Eastman intends to locate the $1.6 billion plant in
Beaumont, Texas, where the company will make low-cost intermediate
chemicals such as methanol, hydrogen and ammonia. Eastman expects
the regulatory permit application process to begin later this year,
and construction is expected to be under way by early 2009.
Construction employment is expected to peak at 1,300-1,500 workers,
with permanent employment expected to be approximately 250. Eastman
expects to have an equity position of as much as 50 percent and to
announce a co-investor in the near future. "We are excited to be
working with Eastman on this gasification project. The scope of
this project integrates our two companies' core strengths and
businesses. The combination of Eastman's gasification and chemical
industry experience and Air Products' industrial gas and large
project experience help to make the project attractive and viable,"
said Alex Masetti, vice president, Tonnage Gases North America for
Air Products. "The gasification project and our involvement
represent a unique opportunity for Air Products to provide our
world-class ASU technology, key to the operation of the gasifier,
and to supply our West Gulf Coast pipeline system with hydrogen
generated from petroleum coke fuel. This source of hydrogen
diversifies our feed for our pipeline network and, in combination
with our multi-plant system, will continue to provide refiners with
a very highly reliable supply of hydrogen to make environmentally
beneficial cleaner burning transportation fuels." "We have a long
association with Air Products and look forward to continuing our
successful relationship in this exciting new project," said David
Gallaspy, director of Project Development for Eastman's
gasification services. Air Products' Gulf Coast pipeline network
extends from the Houston Ship Channel in Texas to Lake Charles, La.
The company's Mississippi River corridor pipeline reaches from
Baton Rouge to Norco, La., and east of New Orleans. These pipeline
networks provide very highly-reliable hydrogen supply to
approximately 50 refinery and process industry customers. Air
Products is committed to increasing the pipeline network size in a
manner that is consistent with the needs of key refining and
petrochemical customers. About Air Products Air Products (NYSE:APD)
serves customers in industrial, energy, technology and healthcare
markets worldwide with a unique portfolio of atmospheric gases,
process and specialty gases, performance materials, and equipment
and services. 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 and is listed in the Dow
Jones Sustainability and FTSE4Good Indices. The company has annual
revenues of $9 billion, operations in over 40 countries, and over
20,000 employees around the globe. For more information, visit
http://www.airproducts.com/. About Eastman Chemical Eastman
manufactures and markets chemicals, fibers and plastics worldwide.
It provides key differentiated coatings, adhesives and specialty
plastics products; is the world's largest producer of PET polymers
for packaging; and is a major supplier of cellulose acetate fibers.
As a Responsible Care(R) company, Eastman is committed to achieving
the highest standards of health, safety, environmental and security
performance. Founded in 1920 and headquartered in Kingsport, Tenn.,
U.S.A., Eastman is a FORTUNE 500 company with 2006 sales of $7.5
billion and approximately 11,000 employees. For more information
about Eastman and its products, visit http://www.eastman.com/.
NOTE: This release may contain forward-looking statements. Actual
results could vary materially, due to changes in current
expectations. DATASOURCE: Air Products CONTACT: Media, Art George
of Air Products, +1-610-481-1340, ; or Martha Lawson of Eastman,
+1-423-229-6574, ; Investors: Nelson Squires of Air Products,
+1-610-481-7461, ; or Greg Riddle of Eastman, +1-212-835-1620, Web
site: http://www.airproducts.com/
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