Praxair Signs New Long-Term Hydrogen Supply Agreement for Phillips 66 Sweeny Refinery

Praxair, Inc., a wholly-owned subsidiary of Linde plc,has reached an agreement with Phillips 66 (PSX) to supply high-purity hydrogen to the company’s Sweeny Refinery located in Old Ocean, Texas, starting in early 2021.

Praxair will extend its 310-mile U.S. Gulf Coast hydrogen pipeline system, which currently runs from Freeport, Texas to Lake Charles, Louisiana, to connect with the Sweeny Refinery. The company will also build, own and operate a new world-scale steam methane reformer (SMR) that will connect to the pipeline system at a location still to be determined.

The new SMR will supply Phillip’s Sweeny Refinery, as well as meet the hydrogen demands of new customers. Upon expected completion in early 2021, this will be the largest hydrogen production unit in the U.S. The unit, which will have a state-of-the-art process design, will increase Praxair’s Gulf Coast hydrogen capacity to more than 1.5 billion cubic feet per day.

“We are proud that world-class refiner Phillips 66 has chosen Praxair to be their hydrogen supplier at Sweeny. We are committed to providing our customers with supply reliability over the long-term. Praxair understands that hydrogen is a critical requirement for our customers, and our robust hydrogen supply system, backed by multiple supply sources and an innovative high-purity hydrogen storage cavern, gives us a unique capability to meet that need,” said Dan Yankowski, president, Global Hydrogen and Carbon Monoxide, Praxair.

“Praxair is an existing supplier for many of our refineries,” said Bob Herman, executive vice president, Refining at Phillips 66. “Praxair’s ability to develop a reliable and cost-effective supply solution at Sweeny Refinery contributed to our recent decision on hydrogen supply.”

With this new Phillips 66 agreement, Praxair is now uniquely positioned to supply hydrogen to the refineries located on the upper-Texas Gulf Coast.

Source: Praxair, Inc.
Date: Nov 9, 2018