Eastman Chemical Co EMN

• Texas Projects will Help Supply Two Signed, Long-Term CO Agreements.
• Projects will Add Over 70 Million Standard Cubic Feet Per Day (MMSCFD) of CO capacity. 
• Both Plants will be Connected to Air Products World's Largest CO Pipeline Network.

LEHIGH VALLEY, Pa., May 8, 2023 /PRNewswire/ -- Air Products (NYSE: APD) today 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 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 (NYSE: LYB) and Eastman Chemical Company (NYSE: EMN). 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 today 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.

About Air Products  
Air Products (NYSE: APD) is a world-leading industrial gases company in operation for over 80 years focused on serving energy, environmental, and emerging markets. The Company has two growth pillars driven by sustainability. Air Products' base business provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, and food. The Company also develops, engineers, builds, owns and operates some of the world's largest industrial gas and carbon-capture projects, supplying world-scale clean hydrogen for global transportation, industrial markets, and the broader energy transition. Additionally, Air Products is the world leader in the supply of liquefied natural gas process technology and equipment, and globally provides turbomachinery, membrane systems and cryogenic containers. 

 The Company had fiscal 2022 sales of $12.7 billion from operations in over 50 countries and has a current market capitalization of over $65 billion. More than 21,000 passionate, talented and committed employees from diverse backgrounds are driven by Air Products' higher purpose to create innovative solutions that benefit the environment, enhance sustainability and reimagine what's possible to address the challenges facing customers, communities, and the world. For more information, visit www.airproducts.com or follow us on LinkedIn, Twitter, Facebook or Instagram.  

Air Products Cautionary Note Regarding Forward-Looking Statements  
This release contains "forward-looking statements" within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's expectations and assumptions as of the date of this release and are not guarantees of future performance. While forward-looking statements are made in good faith and based on assumptions, expectations and projections that management believes are reasonable based on currently available information, actual performance and financial results may differ materially from projections and estimates expressed in the forward-looking statements because of many factors, including the risk factors described in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022 and other factors disclosed in our filings with the Securities and Exchange Commission. Except as required by law, we disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in the assumptions, beliefs or expectations or any change in events, conditions or circumstances upon which any such forward-looking statements are based.

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SOURCE Air Products