Air Products (NYSE: APD) today announced a contract signing with Pucheng Clean Energy Co., Ltd. (PCEC) for the largest single air separation unit (ASU) on-site order ever committed to an industrial gas company.
Air Products, under a long-term supply agreement, will build, own and operate three ASU trains producing over 8,200 tons per day (TPD) of oxygen, over 3,100 TPD of nitrogen, over 375 TPD of compressed dry air for PCEC, and will also produce liquid products for the merchant market in the region.
"This is a landmark contract signing for Air Products. We appreciate the confidence PCEC has shown in Air Products and also appreciate the support we have received from the local Shaanxi government. We look forward to supporting this important project and to having a long-term working relationship with both PCEC and the Shaanxi government," said Phil Sproger, vice president–Business Development for Asia at Air Products. "Air Products will be the first sale-of-gas provider in the Shaanxi province with such a large facility, and we will also enhance our liquid product capacity for the merchant market from this location." Shaanxi province is a new merchant market for Air Products. Air Products will also be the first major industrial gas supplier providing liquid gas products in the Shaanxi region with a project currently under construction at Weihe to be onstream in 2011.
PCEC, a state-owned enterprise established in 2008, will use the industrial gas products in a coal gasification process for chemical production. Air Products' ASU facility at the PCEC plant in Weinan, Shaanxi Province, China is to be onstream in mid-2013. The ASU trains are to include design enhancements to minimize operating costs through energy efficiency. Technology advancements and other productivity improvements support Air Products' overall sustainability goals of reducing energy consumption and emissions.
The PCEC agreement comes less than a month after Air Products announced it would build a world-class hydrogen production facility in Sichuan, China for PetroChina Company Limited, one of the largest oil and gas companies in the world. The agreement signified the first time a state-owned refinery in China would outsource its hydrogen requirements. The facility is to be onstream in early 2012. Air Products is also building an ASU for PetroChina to provide industrial gases and also merchant liquid products which is to be onstream in late 2011.