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Air Products Signs Hydrogen Supply Contract with Pallas

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Air Products & Chemicals Inc.APD announced that it has entered into a long-term hydrogen supply agreement with Pallas Nitrogen Texas, LLC. Under the contract, Air Products will supply 44 million standard cubic feet per day of hydrogen from its existing Gulf Coast Pipeline (GCP) to Pallas. The supply is expected to commence in mid-2016 when Pallas starts ammonia production operations at its plant that will be located on land leased from Air Products at its established Pasadena, TX industrial gas manufacturing location.

This contract will enable Air Products to make use of its available land at its Pasadena plant while further loading its Gulf Coast hydrogen pipeline and network system. The contract will allow the company to utilize its capabilities and assets in an optimum manner.

The GCP enables customers to easily connect to the system and be assured of unparalleled product reliability. The 600-mile pipeline supplies customers with over 1.4 billion feet of hydrogen per day from over 21 hydrogen production plants. Apart from the GCP, Air Products also has a hydrogen pipeline in California in the U.S., in Sarnia, Ontario, Canada, and in Rotterdam, the Netherlands.

On the other hand, Pallas believes that the direct access to Air Products' Gulf Coast Pipeline will enable it to receive safe, reliable and economic delivery of hydrogen at the ammonia plant.

Hydrogen, which will be used by Pallas for ammonia production, is widely used in petroleum refining processes to remove impurities found in crude oil to meet product fuels specifications.

Air Products currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the diversified chemical space include Albemarle Corp. ALB , Koninklijke DSM N.V. RDSMY and Koppers Holdings Inc. KOP . All of these hold a Zacks Rank #2 (Buy).

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AIR PRODS & CHE (APD): Free Stock Analysis Report

ALBEMARLE CORP (ALB): Free Stock Analysis Report

KOPPERS HOLDNGS (KOP): Free Stock Analysis Report

KONINKLIJKE DSM (RDSMY): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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