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ARCO GAS SIGNS 20-YEAR CONTRACT WITH AIR PRODUCTS

 ARCO GAS SIGNS 20-YEAR CONTRACT WITH AIR PRODUCTS
 DALLAS, Feb. 19 /PRNewswire/ -- ARCO Gas, a subsidiary of Atlantic


Richfield Co. (NYSE: ARC), announced today that it has entered into an agreement with Air Products and Chemicals Inc. (NYSE: APD) to supply up to 24 million cubic feet per day of natural gas on a firm basis for a term of 20 years. ARCO Gas will deliver gas into Florida Gas Transmission for transport to Air Products' cogeneration facility in Orlando, Fla. The natural gas-fired plant will produce up to 120 megawatts of electricity that will be sold to Florida Power Corp. and the Reedy Creek Improvement District under long-term contract.
 When completed, the combined cycle cogeneration plant will also produce process steam that will be used by an existing Air Products air separation plant on an adjacent site.
 The ARCO Gas agreement calls for deliveries of gas to begin in 1994. "This long-term agreement demonstrates that ARCO is committed to fulfilling the fuel needs of power producers," said Justin King, chief executive officer of ARCO Gas. "It says that ARCO is in the natural gas business for the long haul and that natural gas is a fuel which can compete with any other fuel on the basis of cost and reliability supply."
 While specific terms of the gas purchase and sales agreement were not disclosed, John P. Jones, vice president and general manager, Environmental and Energy Systems, Air Products, said, "Negotiating a long-term agreement for natural gas supply was very important to the long-term viability of this project. We feel confident about the service ARCO provides."
 ARCO officials said they hope to sign additional long-term contracts to supply natural gas where the economic and environmental benefits make it the best fuel for power generation.
 -0- 2/19/92
 /CONTACT: Rick Ostler of ARCO Gas, 214-880-4945/
 (ARC APD) CO: ARCO Gas ST: California IN: OIL SU: CON


DM-JL -- LA021 -- 0567 02/19/92 15:35 EST
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Publication:PR Newswire
Date:Feb 19, 1992
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