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Hydrogen
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PRODUCER
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CAPACITY*
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Merchant Cryogenic Liquid Hydrogen
|
|
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Air
Products, New Orleans, La.
|
26,800
|
|
Air
Products, Pace, Fla.
|
11,500
|
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Air
Products, Sacramento, Calif.
|
2,300
|
|
Air
Products, Sarnia, Ont.
|
11,500
|
|
BOC,
Magog, Quebec
|
5,900
|
|
HydrogenAl,
Becancour, Quebec
|
4,200
|
|
Praxair,
East Chicago, Ind.
|
11,500
|
|
Praxair,
McInosh, Ala.
|
11,500
|
|
Praxair,
Niagra Falls, NY
|
15,000
|
|
Praxair,
Ontario, Calif.
|
8,500
|
|
Total
Merchant Cryogenic Liquid
|
108,700
|
|
|
|
Merchant Compressed
Hydrogen Gas
|
|
|
Air
Liquide, Dallas, Tex.
|
830
|
|
Air
Liquide, Freeport, Tex.
|
15,000
|
|
Air
Liquide, Honolulu, Hawaii
|
7
|
|
Air
Liquide, Lake Charles, La.
|
50
|
|
Air
Liquide, Odessa, Tex.
|
165
|
|
Air
Liquide, Portland, Ore.
|
200
|
|
Air
Liquide Texas Pipeline:
|
|
|
Corpus Christie, Tex.
|
50,000
|
|
Ingleside, Tex. (2 units)
|
700
|
|
LaPorte, Tex.
|
1,000
|
|
Air
Products, Butler, Ind.
|
1,800
|
|
Air
Products, Carson, Calif.
|
100,000
|
|
Air
Products, Cincinnati, Ohio
|
2,300
|
|
Air
Products, Deleware City, Del.
|
1,500
|
|
Air
Products, Gallatin, Tenn.
|
750
|
|
Air
Products, Hanibal, Mo.
|
960
|
|
Air
Products, Martinez, Calif. (2 units)
|
125,000
|
|
Air
Products, Midland, Mich.
|
750
|
|
Air
Products, New Orleans, La.
|
60,000
|
|
Air
Products, Port Arthur, Tex.
|
100,000
|
|
Air
Products, South Charleston, W.V.
|
3,600
|
|
Air
Products, Tuscola, Il.
|
750
|
|
Air
Products, Wilmington Calif. (2 units)
|
160,000
|
|
Air
Products Louisiana Pipeline:
|
|
|
Convent, La.
|
n.a.
|
|
Geismar, La.
|
35,000
|
|
Plaquemine, La.
|
30,000
|
|
Taft, La.
|
21,000
|
|
Air
Products Texas Pipeline:
|
|
|
Baytown, Tex.
|
12,000
|
|
Clear Lake, Tex.
|
27,000
|
|
LaPorte, Tex. (2 units)
|
52,000
|
|
Mont Belvieu, Tex.
|
29,000
|
|
Pasadena, Tex.
|
80,000
|
|
BOC,
Asbestos, Quebec
|
6,100
|
|
BOC,
Clear Lake, Tex.
|
n.a.
|
|
BOC,
Crawfordsville, Ind.
|
1,080
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|
BOC,
Lima, Ohio
|
13,000
|
|
BOC,
New Castle, Del.
|
1,500
|
|
BOC,
Weirton, W.V.
|
1,080
|
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Brown
Industries, Bradley, Ill.
|
150
|
|
Brown
Industries, Conway, Kan.
|
190
|
|
Brown
Industries, Salina, Kan.
|
120
|
|
Gaspro
Airco, Honolulu, Hawaii
|
7
|
|
General
Hydrogen, Natrium, W.V.
|
500
|
|
Holox,
Augusta, Ga.
|
400
|
|
Industrial
Gas Products, Sauget, Ill.
|
1,500
|
|
Javelina,
Corpus Christi, Tex.
|
35,000
|
|
Jupiter
Chemicals, Westlake, La.
|
35,000
|
|
Lagus,
Decatur, Ala. (2 units)
|
10,000
|
|
Equistar,
Channelview, Tex.
|
80,000
|
|
MG
Industries, Kalama, Wash.
|
290
|
|
MG
Industries, Rockport, Ind.
|
720
|
|
MG
Industries, St. Marys, Pa.
|
290
|
|
Praxair,
Barberton, Ohio
|
n.a.
|
|
Praxair,
Belle, W.V.
|
3,000
|
|
Praxair,
Belvedere, N.J.
|
430
|
|
Praxair,
Bute, Mont.
|
290
|
|
Praxair,
Deepwater, N.J.
|
6,000
|
|
Praxair,
Escorse, Mich.
|
1,440
|
|
Praxair,
Fairless Hills, Pa.
|
1,920
|
|
Praxair,
Geismar, La. (2 units)
|
95,000
|
|
Praxair,
Lake Charles, La. (3 units)
|
126,000
|
|
Praxair,
Norcross, Ga. (2 units)
|
3,980
|
|
Praxair,
Seymour, Ind.
|
760
|
|
Praxair,
Westlake, La..
|
35,000
|
|
Praxair,
West Leechburg, Pa.
|
1,920
|
|
Praxair,
Whiting, Ind.
|
4,800
|
|
Praxair
Texas Pipeline:
|
|
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Channelview, Tex.
|
40,000
|
|
LaPorte, Tex.
|
25,000
|
|
Mont Belvieu, Tex.
|
29,000
|
|
Texas City, Tex. (3 units)
|
75,400
|
|
Prime
Gas, Deleware City, Del.
|
200
|
|
Rohm
and Haas, Deer Park, Tex.
|
n.a.
|
|
T&P
Syngas Supply, Texas City, Tex.
|
32,400
|
|
Total
Merchant Compressed Gas
|
1,580,829
|
|
Total
Merchant Product
|
1,689,529
|
*Thousands
of standard cubic feet (SCF) per day merchant hydrogen from steam reforming
of light hydrocarbons or recovered as by-product from chlor-alkali plants or
chemical synthesis operations. Another 2,995,000 thousand SCF per day of
captive hydrogen capacity exists at 145 locations in the U.S.
Last
month, BOC acquired Celanese's captive hydrogen/carbon monoxide syngas plant
at Clear Lake, Tex. BOC will supply Celanese with carbon monoxide and serve
other customers with hydrogen.
Last
year, four new plants were announced for supplying hydrogen to hydrotreating
units at petroleum refineries. In December of 2002, BOC announced it had
begun construction on a new hydrogen plant at Citgo Petroleum Corp.'s
Lemont, Ill., oil refinery. The plant is expected on line in the second half
of this year. A month earlier, Air Products announced a long-term hydrogen
supply agreement with ConocoPhillips. As part of the deal, Air Products will
build, own and operate a new hydrogen facility in Lake Charles, La., with a
capacity in excess of 100 million cubic feet per day. Air Products will link
the new facility to its existing hydrogen pipeline network. About the same
time, Praxair revealed an agreement with BP to supply hydrogen to BP's Texas
City, TX chemicals and refinery complex. Praxair disclosed it would build
two new hydrogen plants, each 100 million cubic feet per day, on the U.S.
Gulf Coast to supply BP. The estimated start-up of the plants is in the
second half of 2004.
In
the spring of 2001, Air Products commissioned a 100 million cubic feet per
day hydrogen plant at Port Arthur, Tex. to supply an adjacent Premcor
refinery. Air Products is also constructing a 40 million cubic foot per day
hydrogen unit at New Orleans for startup in the third quarter of 2003. The
plant will support Murphy Oil's (El Dorado, AR) hydrocracker at Meraux, LA.
HydrogenAl,
Becancour, Quebec, is a joint venture between Hydro Quebec and Air Liquide.
Gaspro
Airco, Honolulu, Hawaii, is a subsidiary of BOC.
Holox,
Augusta, Ga., is a 63/37 joint venture between Linde (Germany) and Hoek Loos
(Holand).
Lagus,
Decatur, Ala., is owned by Linde.
T&P
Syngas Supply, Texas City, Tex., is a joint venture between Texaco and
Praxair.
Profile
last published 1/22/01; this revision 2/24/03.
DEMAND
2001: 421 billion SCF; 2002: 460 billion SCF; 2006: 675 billion SCF,
projected. Demand equals production plus imports (2001: 4,137 million SCF;
2002: 4,960 million SCF) less exports (2001: 13,965 million SCF; 2002:
14,402 million SCF). Approximately 8 percent of the merchant market demand
is served with cryogenic liquid product and 92 percent with compressed gas.
Estimated demand excludes hydrogen produced by captive plants, production by
ammonia dissociation, and hydrogen consumed as fuel.
GROWTH
Historical (1997 - 2002): 9.5 percent per year; future: 10 percent per year
through 2006 merchant hydrogen. Future growth for total hydrogen (merchant
and captive) is 4 percent per year through 2006.
PRICE
Historical (1997 - 2002): High, $ 2.60 per 100 SCF, compressed gas, tube
trailer, f.o.b.; low, $1.25, same basis. Current: $1.70 to $2.60 same basis;
$1.15 to $1.80 per 100 SCF, cryogenic liquid, tank truck, f.o.b.; $0.18 to $0.80
compressed gas, pipeline, dlvd. Hydrogen market prices exhibit great variation
depending on the form of delivery, consumed volume, location and contract
length. For the largest customers, pipeline supply is the most economical supply
method.
USES
Petroleum refining, 66.8 percent; petrochemicals, 26.2 percent; other, 7
percent, including: metals, 2.7; electronics, 1.5; government (NASA), 1.2;
edible fats & oils, 0.7; float glass, 0.3; utility power generation,
0.2; miscellaneous, 0.4.
STRENGTH
More hydrogen plants are being constructed because of demand growth from the
refinery sector, which uses hydrogen to upgrade fuels to meet mandates for
low-sulfur gasoline and diesel, as well as for processing higher-sulfur crude.
U.S. refining hydrogen demand totaled 1.4 trillion SCF per day in 2000, and is
will growing at 4 percent per year.
Although the aggregate hydrogen consumption is
growing at about 4 percent annually, growth in the merchant hydrogen
business is significantly higher, perhaps 10 percent, as refineries change
their sourcing strategy. In the past, refineries met their hydrogen
requirements with recovered material, or they built, owned and operated
their own hydrogen plants. But refineries are increasingly strapped for
cash, making them receptive to buying hydrogen from single- and multi-user
pipelines owned and operated by industrial gas companies.
WEAKNESS
The soft economy has resulted in reduced hydrogen demand in metals,
electronics and float glass production. The impact, however, is only marginal as
these segments combined represent only about 5 percent of merchant demand.
OUTLOOK
Hydrogen has remained strong despite the weakened economy in recent years
and this situation should prevail regardless of when the economy turns
around. The industrial gas majors, Air Products, Praxair, Air Liquide and
BOC, have all raised their prices for hydrogen, based on the strong demand.
This pricing trend is expected to continue.
With the cost of sweet
crude oil increasing, refiners are processing more heavy sour crude, which
requires additional hydrogen for sulfur removal. Moreover, legislation
planned to reduce sulfur content in gasoline in 2004 and in diesel in 2006
will require refiners to use more hydrotreating process steps. As a result,
U.S. hydrogen demand should grow at 4 percent per year during the next four
years.
While some refiners own and operate their own
hydrogen plants, industrial gas companies have seen an increase in their
on-site business as refiners view hydrogen as a utility and allow the gas
companies to build, own and operate the hydrogen plants. This trend will
produce double digit growth in the merchant hydrogen sector.
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