Air Products to Provide Liquefaction Process to Technology and Equipment For First LNG Plant in Peru

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February 08, 2006

Air Products (NYSE: APD) today announced that it has received an order from Peru LNG S.R.L. to provide its proprietary process technology and main cryogenic heat exchanger for the first liquefied natural gas (LNG) plant in Peru.

"Air Products continues to advance its technology in close cooperation with the producers around the world. We are pleased to be involved with Peru's first-ever LNG production facility," said Mark Modjeska, director, LNG for Air Products. The company will provide its proprietary propane pre-cooled mixed refrigerant liquefaction process technology with the Split MRTM refrigeration equipment configuration, and an MCR® main cryogenic heat exchanger to produce in excess of four million metric tons per year of LNG at this location to be on-stream in 2009.

The shareholders of Peru LNG S.R.L. are Hunt Oil, SK Corp., and Repsol YPF. The natural gas will be liquefied using Air Products' technology and equipment in a single process train at the LNG plant in Pampa Melchorita, Peru. Repsol will market the LNG.

A vast majority of the total worldwide baseload LNG production capacity is produced with Air Products' technology. Air Products has designed, manufactured, and exported nearly 75 LNG heat exchangers from its Wilkes-Barre, Pa. facility over the last 30 years. In 2005, Air Products completed a facility expansion at Wilkes-Barre increasing the fabrication area by approximately 30 percent and including the installation of additional manufacturing equipment. Since 2002, equipment manufacturing capacity at the facility has been increased by 100 percent.

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