Praxair China has signed a long-term supply agreement with Yankuang Group and Guohong Chemicals for the supply of industrial gases to its coal gasification process, to produce methanol and downstream chemicals at its chemical park in the city of Zoucheng, northern China.
As part of the agreement Praxair will construct a new air separation facility, which is expected to start operations in late 2014 with a production of 3,000 tons of oxygen each day.
Praxair will also acquire Yankuang Guohong's existing air separation units in order to meet the gas demand of Yankuang Guohong for its coal to chemical project.
The argon, nitrogen and oxygen generated from the new facilities and existing air separation plants will be combined with Praxair China's liquid production and distribution network in the region, to improve distribution efficiency and reliability for customers in the regional merchant market.
Wang Xin, Yankuang Group chairman, said: "With Praxair China's leading technology, excellent management team and strong financials, the strategic cooperation between Yankuang Group and Praxair will be a win-win relationship."
It will be the fourth large capacity onsite air separation plant ever contracted by Praxair.