Air Liquide is investing $50 million to modernize its hydrogen pipeline network along the U.S. Gulf Coast, a strategic move backed by new long-term supply agreements with two of the region’s largest refineries.

The company said the investment will enhance the capacity, flexibility, and reliability of its infrastructure, with the officials saying it would strengthen its position in the Gulf Coast, which hosts over 40% of the nation's refining capacity. 

The project includes reinforcing pipeline integrity, installing new state-of-the-art compressors, and upgrading distribution systems, with all upgraded assets to be connected to Air Liquide's underground hydrogen storage cavern at Spindletop, Texas, one of the world’s largest.

This overhaul focuses on modernizing existing infrastructure rather than building new routes, a strategy intended to lower capital expenses, accelerate permitting, and minimize environmental disruption. 

The upgrades will support the high demand for hydrogen in refining and petrochemical processes, including hydrocracking and desulfurization.

Company officials said the investment strengthens its position in the Gulf Coast, which hosts over 40% of the nation's refining capacity.

The multi-year contracts with the two refiners are expected to provide predictable revenue streams while offering customers a stable, reliable supply insulated from market volatility.

While the pipeline network currently transports hydrogen produced from fossil fuels, the modernization project is designed to make the system capable of handling low-carbon and green hydrogen in the future.  

Air Liquide stated the upgrades are a critical step in preparing for increased industrial decarbonization and the broader transition to sustainable energy sources. 

The enhanced network provides a robust backbone for future projects, including hydrogen production from electrolysis and facilities integrated with carbon capture technology.