Engineering News

BOC Signs Contracts to Supply Hydrogen to
Chevron and Holly Oil Refineries

Thursday June 23, 4:00 am ET

Hydrogen Used to Produce Cleaner Burning Fuels

MURRAY HILL, N.J.--(BUSINESS WIRE)--June 23, 2005--BOC 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.

Chevron Corporation is one of the world's leading energy companies. With more than 47,000 employees, Chevron subsidiaries conduct business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing and distributing fuels and other energy products. Chevron is based in San Ramon, Calif. More information on Chevron is available at www.chevron.com .

Holly Corporation, headquartered in Dallas, Texas, is an independent petroleum refiner and marketer that produces high value light products such as gasoline, diesel fuel and jet fuel. Holly operates through its subsidiaries a 75,000 barrels per day ("bpd") refinery located in Artesia, New Mexico, a 26,000 bpd refinery in Woods Cross, Utah, and an 8,000 bpd refinery in Great Falls, Montana. More information on Holly is available at www.hollycorp.com .

The BOC Group, the world-wide industrial gases, vacuum technologies and distribution services company, serves two million customers in more than 50 countries. It employs 30,000 people and had annual sales of over $8.3 billion in 2004. Further information about The BOC Group may be obtained on the Internet at http://www.boc.com .

Source: The BOC Group

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