Air Products (APD) acquired a new steam methane reformer (SMR) hydrogen facility from MarkWest Energy Partners L.P. (MWE). The facility, which is under construction, is in Corpus Christi, Texas. The company did not disclose the financial details of the transaction.
 
This acquisition further reinforces Air Products’ position as a leading hydrogen provider in the U.S. Gulf Coast. The company said that the new facility, which is expected to be operational in March 2010, will produce over 30 million standard cubic feet per day. It will be owned and operated by Air Products.
 
The companies also signed a separate long-term supply agreement whereby Air Products will provide hydrogen and steam to MarkWest.
 
Earlier this year, Air Products strengthened its U.S. Gulf Coast hydrogen pipeline network with the successful completion of a pipeline connection across Lake Pontchartrain. The company said that this enhances the supply reliability and efficiency to its own liquid hydrogen production plant in New Orleans, which is the largest liquid hydrogen facility in the world. In addition, Air Products is in the process of building two new steam methane reformers in the Louisiana portion of its Gulf Coast system.
 
Air Products has hydrogen pipeline networks operating around the world, including in Southern California, U.S., in Sarnia, Ontario, and Edmonton, Alberta in Canada, and in Rotterdam in The Netherlands.
 
During the second quarter conference call, the company said that the refinery hydrogen volumes continued to increase. Further, the company expects these volumes to increase modestly from the current levels across most of its pipeline franchises, due to higher demand and fewer customer outages.
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