Industrial gas supplier Praxair, has signed a new long-term supply agreement with Valero Energy for expansion of its hydrogen capacity to 270 million standard cubic feet per day (scfd) and extending its hydrogen pipeline system in Texas and Louisiana, US.
Praxair will install a new 135 million scfd hydrogen plant at Valero’s St. Charles refinery, under which Valero will consume 120 million scfd of hydrogen and approximately 400,000 pounds per hour of steam at its new 50,000 barrels-per-day hydrocracker.
Construction at plant will begin in the fourth quarter of 2012.
The company plans to extend its Louisiana pipeline by 50 miles, connecting the new hydrogen plant in St. Charles to Praxair’s existing complex in Geismar, Louisiana.
The pipeline extension is scheduled to be in operation by the second quarter of 2012.
In addition to this, Praxair will install a new 135 million scfd hydrogen plant at Valero’s Port Arthur, Texas, refinery for which the start-up is scheduled for the first quarter of 2013.
Under the new contracts, Praxair will supply 150 million scfd of hydrogen and approximately 200,000 pounds per hour of steam to Valero’s 50,000 barrels-per-day hydrocracker.