Air Products to Own, Operate and Maintain New 350 TPD Oxygen Plant at Tesoro Northwest Company's Anacortes, Washington Refinery

Air Separation Unit Utilizes Air Products' Cost-Efficient

Product-Based Plant Design



Apr 30, 2001, 01:00 ET from Air Products and Chemicals, Inc.

    LEHIGH VALLEY, Pa., April 30 /PRNewswire/ -- Air Products and Chemicals,
 Inc. (NYSE:   APD) has signed a supply agreement with Tesoro Northwest Company
 for the construction of a 350 ton-per-day air separation unit (ASU) at
 Tesoro's Anacortes, Wash. refinery.  Air Products will own, operate and
 maintain the plant under a long-term contract that includes the production of
 oxygen for enrichment of Tesoro's fluidized catalytic cracker, and crude argon
 that Air Products will use to supply the expanding Pacific Northwest merchant
 market.  The ASU is based on Air Products' novel plant design which utilizes a
 product-based approach to provide customers with a range of product flow
 rates, pressures and purities, including a crude argon production option.
     "We are pleased that Tesoro has selected Air Products to supply their
 oxygen requirements," stated Jeffry Byrne, Air Products' regional vice
 president for the Chemical and Process Industries in North America.  "Our
 product-based plant design has experienced strong market success since we
 introduced it in 1998.  Its cost-effective design, and our ability to truly
 understand our customers' requirements, enables us to efficiently engineer and
 construct plants that offer our customers exceptional reliability and safety."
     Tesoro will utilize oxygen produced by the plant in its fluidized
 catalytic cracker, which is being modified as part of an overall $94 million
 refinery project at its Anacortes facility.  This complex, high-conversion
 refinery processes 110,000 barrels per day of crude feedstocks into a variety
 of transportation and heating fuels.
     Crude argon from the plant will be purified at Air Products' Puyallup,
 Wash. plant for supply to a broad range of growing markets in the Pacific
 Northwest, including the electronics, metals processing and non-ferrous metals
 industries.
     The product-based plant was co-designed by Air Products' air separation
 groups in the United States and England.  It utilizes standardized components
 to realize cost efficiencies in plant design, materials procurement and
 execution.  Construction timelines for ASUs utilizing the product-based plant
 can be up to 25 percent shorter than those experienced with traditional ASUs.
 Tesoro Northwest Company is the trade name for Tesoro West Coast Company, a
 subsidiary of Tesoro Petroleum Corporation, a rapidly growing independent
 energy company headquartered in San Antonio, Tex., with revenues of $5 billion
 in 2000.  The company produces a wide variety of petroleum products through
 its three oil refineries and is one of the largest independent refining and
 marketing companies in the western United States.
     Air Products and Chemicals, Inc. (www.airproducts.com) is the world's only
 combined gases and chemicals company.  Founded more than 60 years ago, the
 business has annual revenues of $5.5 billion and operations in 30 countries.
 Air Products is a market leader in the global electronics and chemical
 processing industries, and a longstanding innovator in many industrial
 markets, including coatings, adhesives and polyurethanes.  The company
 distinguishes itself through its 17,500 employees around the world, who build
 lasting relationships with their customers and communities based on
 understanding, integrity and passion.
     ***NOTE: This release may contain forward-looking statements. Actual
 results could vary materially, due to changes in current expectations.
 
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SOURCE Air Products and Chemicals, Inc.
    LEHIGH VALLEY, Pa., April 30 /PRNewswire/ -- Air Products and Chemicals,
 Inc. (NYSE:   APD) has signed a supply agreement with Tesoro Northwest Company
 for the construction of a 350 ton-per-day air separation unit (ASU) at
 Tesoro's Anacortes, Wash. refinery.  Air Products will own, operate and
 maintain the plant under a long-term contract that includes the production of
 oxygen for enrichment of Tesoro's fluidized catalytic cracker, and crude argon
 that Air Products will use to supply the expanding Pacific Northwest merchant
 market.  The ASU is based on Air Products' novel plant design which utilizes a
 product-based approach to provide customers with a range of product flow
 rates, pressures and purities, including a crude argon production option.
     "We are pleased that Tesoro has selected Air Products to supply their
 oxygen requirements," stated Jeffry Byrne, Air Products' regional vice
 president for the Chemical and Process Industries in North America.  "Our
 product-based plant design has experienced strong market success since we
 introduced it in 1998.  Its cost-effective design, and our ability to truly
 understand our customers' requirements, enables us to efficiently engineer and
 construct plants that offer our customers exceptional reliability and safety."
     Tesoro will utilize oxygen produced by the plant in its fluidized
 catalytic cracker, which is being modified as part of an overall $94 million
 refinery project at its Anacortes facility.  This complex, high-conversion
 refinery processes 110,000 barrels per day of crude feedstocks into a variety
 of transportation and heating fuels.
     Crude argon from the plant will be purified at Air Products' Puyallup,
 Wash. plant for supply to a broad range of growing markets in the Pacific
 Northwest, including the electronics, metals processing and non-ferrous metals
 industries.
     The product-based plant was co-designed by Air Products' air separation
 groups in the United States and England.  It utilizes standardized components
 to realize cost efficiencies in plant design, materials procurement and
 execution.  Construction timelines for ASUs utilizing the product-based plant
 can be up to 25 percent shorter than those experienced with traditional ASUs.
 Tesoro Northwest Company is the trade name for Tesoro West Coast Company, a
 subsidiary of Tesoro Petroleum Corporation, a rapidly growing independent
 energy company headquartered in San Antonio, Tex., with revenues of $5 billion
 in 2000.  The company produces a wide variety of petroleum products through
 its three oil refineries and is one of the largest independent refining and
 marketing companies in the western United States.
     Air Products and Chemicals, Inc. (www.airproducts.com) is the world's only
 combined gases and chemicals company.  Founded more than 60 years ago, the
 business has annual revenues of $5.5 billion and operations in 30 countries.
 Air Products is a market leader in the global electronics and chemical
 processing industries, and a longstanding innovator in many industrial
 markets, including coatings, adhesives and polyurethanes.  The company
 distinguishes itself through its 17,500 employees around the world, who build
 lasting relationships with their customers and communities based on
 understanding, integrity and passion.
     ***NOTE: This release may contain forward-looking statements. Actual
 results could vary materially, due to changes in current expectations.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X23184243
 
 SOURCE  Air Products and Chemicals, Inc.