Air Liquide Large Industries U.S. LP has entered into agreements with Valero Energy Corporation (Valero) for the long term supply of hydrogen to two Texas refineries, one in Texas City and the other in Port Arthur.
Air Liquide will supply a total of 105 million standard cubic feet per day (SCFD) of hydrogen to the two refineries.
Air Liquide has been a long term partner with Valero, beginning in 1996 with hydrogen supply to Valero’s Corpus Christi refinery and then to the Texas City and Three Rivers refineries in 1998. The long-term hydrogen supply agreements for Valero’s Texas City and Port Arthur refineries will span more than 15 years.
Commenting on the new agreements, Michael Graff, President & CEO of American Air Liquide Holdings, Inc. said, “Air Liquide and Valero share a vision for a reliable, efficient and environmentally responsible energy supply, and our companies enjoy a long term relationship that continues to grow. Air Liquide’s advanced hydrogen production technologies and expansive pipeline and logistics network uniquely position us to offer the refining and petrochemical industries the capacity, reliability and energy efficiency required to meet the growing demand for their products.”
Maintaining existing sales volumes and securing new hydrogen business is one of Air Liquide’s key strategic priorities for its industrial gas business in the U.S. Air Liquide’s new 120MMSCFD Steam Methane Reformer (SMR) being built in La Porte, Texas, is expected on-line at the beginning of next year and will serve Valero and other Air Liquide customers along its pipeline network.
Hydrogen is used in the oil refining process to convert crude oil into refined products and to remove sulfur for cleaner burning fuels.