BOC Signs Contracts to Supply Hydrogen to Chevron and Holly Oil Refineries; Hydrogen Used to Produce Cleaner Burning Fuels

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June 23, 2005

BOC (NYSE: BOX) is expanding its global hydrogen supply network and helping to produce cleaner fuels with a new plant in Salt Lake City, Utah.

BOC has now signed a total of seven hydrogen supply contracts in three years to supply U.S. refineries. The Salt Lake City plant, which represents an investment of nearly $50 million, will supply Chevron and Holly Corporation's Utah subsidiary with hydrogen for cleaner fuels production at their refineries. The refiners are upgrading their facilities in accordance with the U.S. Environmental Protection Agency's lower-sulfur requirements for gasoline and diesel fuels.

Chevron, which is installing additional hydrotreating capacity at its 49,000 barrel-a-day refinery, will take hydrogen and steam from BOC's plant, which will be located on the Chevron site. Holly will also receive hydrogen for new hydrotreating capacity at its nearby 26,000 barrel-a-day Woods Cross refinery through a five-mile pipeline connection from the BOC facility.

Construction on the hydrogen plant is expected to begin by early July, with production commencing by mid 2006. In the U.S., BOC has a total of 175 million standard cubic feet a day of hydrogen due onstream in 2006, as plants at refineries in Toledo and Lima, Ohio, begin operations.

"We are pleased to support Chevron and Holly in their efforts to protect our environment. When so much of the world's attention is focused on ensuring secure energy sources, BOC is proud to provide customers with a cost effective supply of hydrogen so they can continue to meet consumers' energy demands," said Trevor Burt, president, Process Gas Solutions, Americas.

Alan Iantosca, vice president, major tonnage projects, said the agreements take advantage of BOC's strength in supplying hydrogen and steam to refinery customers and allow the company to continue to establish a strong presence in a growth market.

"The hydrogen capacity also gives Chevron and Holly greater flexibility to process a variety of crude oil slates, a key consideration given the increasing amount of heavier, sourer crudes coming to market," Iantosca said.

  • [ BOC Signs Contracts to Supply Hydrogen to Chevron and Holly Oil Refineries; Hydrogen Used to Produce Cleaner Burning Fuels]

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