Hurricane Katrina
Update: Air Products' Liquid Hydrogen Supply Situation Improving
Sep 12, 2005 - PR Newswire
LEHIGH VALLEY, Pa., Sept. 12 /PRNewswire-FirstCall/ -- Air Products
(NYSE: APD) today announced an update on its liquid hydrogen supply and
the status of its New Orleans, La. production facility impacted by
Hurricane Katrina. The company reported that it has been able to secure
additional hydrogen supplies from other sources and find different ways
to improve the liquid hydrogen shortage situation with product
management. Air Products is in the process to begin repairing its New
Orleans facility, but water must be drained from the site area to regain
road access and power supply.
"To date, we have been able to maintain supply to the majority of our
customers. While we will not be able to meet full demand of all
customers, the situation has improved, and we informed our customers of
this a few days ago," said Mark Bye, group vice president, Gases and
Equipment Group for Air Products. "We have been working closely with our
customers to understand their precise requirements and identify options
to best manage their current and future hydrogen supply."
Air Products is encouraged that it has been able to continue
supplying customers with hydrogen by converting some customer operations
from liquid to gaseous hydrogen supply. The company is also securing
product from other sources, such as customers without immediate needs
releasing their stored hydrogen back to Air Products. Additionally, the
company has determined that some inventory at its New Orleans facility
is undamaged and can be distributed when safe road access becomes
available. Air Products is also working on arrangements for alternative
feedgas supply to its liquid hydrogen facility in Sarnia, Ontario,
Canada.
"We're ready to make plant repairs. We have our people and
contractors positioned, and we're lining up materials. We need the
continued help of the government to get the water out of the surrounding
plant area to get safe road access and restore infrastructure. Then we
can deliver the stored inventory to our customers and begin repairs. At
that point, we can begin looking to a start-up date," said Bye.
Despite the improved situation in continuing to supply customers, the
force majeure on liquid hydrogen remains in effect. "We understand our
customers' concerns and appreciate their support and flexibility in
these difficult times. They recognize the challenges we face from the
storm and have been supportive," said Bye. "We are committed to resolve
these issues as rapidly as possible."
All other Air Products industrial gas and chemical operations in the
Gulf Coast area, including the pipeline system, are on-stream and
delivering multiple products to customers. Air Products also supplies
gaseous hydrogen from its New Orleans facility to two refiners in the
immediate local area. This production is currently shutdown as a result
of the storm.
Air Products (NYSE: APD) serves customers in technology, energy,
healthcare and industrial markets worldwide with a unique portfolio of
products, services and solutions, providing atmospheric gases, process
and specialty gases, performance materials and chemical intermediates.
Founded in 1940, Air Products has built leading positions in key growth
markets such as semiconductor materials, refinery hydrogen, home
healthcare services, natural gas liquefaction, and advanced coatings and
adhesives. The company is recognized for its innovative culture,
operational excellence and commitment to safety and the environment and
is listed in the Dow Jones Sustainability and FTSE4Good Indices.
The company has annual revenues of $7.4 billion, operations in over
30 countries, and nearly 20,000 employees around the globe. For more
information, visit
http://www.airproducts.com.
"This press release may contain forward-looking statements that are
based upon the company's current beliefs and expectations as to the
outcome and timing of future events and are subject to certain risks and
uncertainties that could cause actual results to differ materially from
those projected by the company. Such risks and uncertainties are
disclosed in the company's filings with the U.S. Securities and Exchange
Commission. The company disclaims any obligation or undertaking to
disseminate any updates or revisions to any forward-looking statements
to reflect any change in the company's beliefs or expectations or any
change in events, conditions or circumstances upon which any such
statements are based." SOURCE Air Products
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