"Through the implementation of these projects, we are creating a world-scale, integrated refining system that leverages the best aspects of our two Louisiana refineries in Convent and Norco," said Dan Romasko, President and CEO of Motiva. "At 620,000 barrels per day, our Port Arthur refinery is already the largest refinery in North America and benefits from this scale and efficiency. With an integrated crude capacity over 500,000 barrels per day, our Louisiana Refining System will rank in the top five of North American refineries in capacity and deliver significant value to Motiva’s portfolio."

The Maurepas pipeline system is the first step in the Louisiana integration project. This system is comprised of three pipelines that will be built, owned and operated by affiliates of SemGroup Corporation, a publicly traded midstream service company.

The Maurepas crude pipeline will connect the existing LOCAP terminal in St. James, Louisiana to the Norco refinery via a 34-mile pipeline, greatly improving access to advantaged domestic crude oil. The Maurepas 35-mile and the 34-mile intermediates pipelines will directly connect the Norco and Convent refineries supporting optimization of both plants’ conversion units while improving logistics efficiency, alleviating dock congestion and allowing additional product exports.

“The Louisiana integration strategy is an exciting opportunity for Motiva to unlock significant value for our owners,” said Romasko. "This project is well aligned with our strategic priorities and represents a performance step change supporting our transformation journey.”

When the pipelines are complete, Motiva plans to idle the Fluid Catalytic Cracker (FCC) at its Convent refinery. Additionally, the company intends to reconfigure the existing hydrocracker unit at its Norco refinery to process 30,000 barrels per day of additional gas oil into high quality diesel. On a combined basis, the Louisiana Refining System is expected to drive incremental annual benefits of $350 million of EBITDA.

• Motiva Integrates Refineries to Create Louisiana Refining System

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“Our initial hydrogen supply to Motiva’s Convent facility goes back many years and we are pleased to expand this working relationship with this additional agreement. This is the second instance with Motiva in which the flexibility in hydrogen supply options available with our Texas and Louisiana hydrogen pipeline created added value. We believe the connection of our Texas and Louisiana pipelines into one system will be an asset for the refinery and petrochemical industries along our Gulf Coast hydrogen franchise,” said Wilbur Mok, vice president - North America Tonnage Gases at Air Products.

• Air Products Supplying Additional Hydrogen Required by Motiva from Gulf Coast Pipeline Asset

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“Having a highly reliable pipeline supply capability already in place was important to this contract. We have supplied Motiva’s Convent facility for years and have demonstrated our ability to reliably supply product to the refinery. The additional flexibility in supply options available to customers when we connect the Texas and Louisiana hydrogen pipelines creates a lot of value. As the market leader we are always working to be responsive to customers’ additional hydrogen demand,” said Wilbur Mok, vice president - North America Tonnage Gases at Air Products.

Air Products has been supplying hydrogen to Motiva at Convent in part from an on-site steam methane reformer facility since 2006. The additional hydrogen supply will come directly from Air Products’ Gulf Coast pipeline supply network. Currently, Air Products operates hydrogen pipelines in both Texas and Louisiana. Work is underway to connect the two systems to make it the world’s largest hydrogen plant and pipeline supply network.

Air Products announced plans to construct a new 180-mile long pipeline in 2010. The new pipeline extension, which is in the project execution phase, will connect Air Products’ Texas hydrogen system to the Louisiana hydrogen system. Once complete, Air Products’ hydrogen pipeline supply network will stretch from the Houston Ship Channel in Texas to New Orleans. This integrated pipeline system will unite over 20 hydrogen plants and over 600 miles of pipelines. It will supply the Louisiana and Texas refinery and petrochemical industries with over 1.2 billion cubic feet of hydrogen per day. The new Gulf Coast hydrogen pipeline network is expected to be operational in 2012.

This is the second recent announcement of new hydrogen supply agreements sourced from Air Products’ Gulf Coast pipeline supply network. Yesterday, Air Products announced the long-term supply of hydrogen to be used at Shell’s Deer Park, Texas refinery beginning in mid-2013.

• Air Products Gulf Coast Pipeline Fills Additional Hydrogen Requirement

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Praxair recently announced it will extend its existing Louisiana hydrogen pipeline complex by connecting it to a new hydrogen plant that is being constructed in the St. Charles Parish. The pipeline extension is scheduled to be in operation during the second quarter of 2012 and the plant in the fourth quarter of 2012.

Hydrogen is used by petroleum refiners to produce ultra-low-sulfur diesel and other transportation fuels. Demand for these fuels continues to increase in order to comply with environmental regulations.

Praxair operates more than 50 hydrogen production facilities and seven hydrogen pipeline systems worldwide. Refinery customers worldwide benefit from Praxair’s complete portfolio of large-volume industrial gases, cylinder gases and specialized refinery technologies and services.

Praxair is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2010 sales of $10 billion. The company produces, sells and distributes atmospheric, process and specialty gases, and high-performance surface coatings. Praxair products, services and technologies bring productivity and environmental benefits to a diverse group of industries, including aerospace, chemicals, electronics, energy, food and beverage, healthcare, manufacturing, metals and others. More information on Praxair is available on the Internet at www.praxair.com.

• Praxair to Supply Hydrogen to Motiva Louisiana Refinery

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