Air Products announced it will build, own and operate two new world-scale carbon monoxide (CO) production facilities in Texas.
The facilities in La Porte and Texas City, just south of Houston, will produce a combined over 70 million standard cubic feet per day (MMSCFD) of CO and will be connected to Air Products' existing Gulf Coast, and the world's largest, CO pipeline network.
Air Products is also announcing new long-term CO supply contracts with LyondellBasell and Eastman Chemical Company. Both customers will be connected to and draw significant additional product via these new facilities from Air Products' expanding CO pipeline network and will benefit from the additional CO supply reliability from the new La Porte and Texas City facilities.
"We are pleased to announce these new and innovative projects. The new assets and agreements greatly expand Air Products' already strong leadership CO position in the Gulf Coast. These strategic investments will provide additional growth and enhanced supply reliability to our business and for our valued customers. We will continue to seek ways to continually enhance the robustness of our value-added and leading pipeline network," said Dr. Samir J. Serhan, Air Products' Chief Operating Officer.
At La Porte, Air Products will produce over 30 MMSCFD of CO, with a vast majority to be supplied to LyondellBasell. The new facility is expected to be onstream in 2024. Air Products is also announcing a long-term agreement to purchase synthesis gas (syngas) from existing LyondellBasell natural gas, partial oxidation units, which will be used as part of the CO production feed.
LyondellBasell will realize Scope 1 emissions reductions as part of this CO project.
LyondellBasell and Air Products are also working collaboratively on a carbon dioxide recovery project. Together these projects will support progress LyondellBasell is making towards its sustainability goals as stated in its 2022 Sustainability Report.
At Texas City, the new unit will produce over 40 MMSCFD of CO, with a vast majority to be supplied to Eastman. Once onstream in 2026, the CO facility will be the world's largest single source of CO production.
As part of Air Products' continuous improvement efforts in customer reliability, the facility will be incorporated into the company's existing CO pipeline network with the addition of a new 35-mile connection to Texas City.
