Air Liquide México S.A. de R.L. de C.V. has penned a deal to supply state-owned petroleum company Petróleos Mexicanos (Pemex) with hydrogen (H2).

The Mexican branch of Tier One player Air Liquide will supply the H2 to Pemex’s Miguel Hidalgo refinery in Tula, Mexico.

Under the contract, Air Liquide will invest in a new plant in order to supply the required H2 for the Tula refinery’s expansion project. Air Liquide will also operate the existing plant at the Tula site.

The supply deal spans 20 years.

A statement from Pemex said that the deal with Air Liquide México will generate savings in excess of 30%.

“This alliance will improve the reliability of the H2 supply, which in turn will reduce the number of unscheduled stops and increase the production of gasolines in the refinery,” the statement added.

Air Liquide holds a marginal share of around 4% in the Mexico industrial gases business, which is worth approximately $1.5bn (2015) according to gasworld Business Intelligence.