Industrial gas giant Air Liquide has signed a long-term renewal contract to supply hydrogen (H2) and carbon monoxide (CO) to BASF’s production units at the port of Antwerp, Belgium.
This is the latest, strategic investment move by the Tier One player having financed €160m ($174m) for a world-scale H2 production unit and a further €50m ($54m) in a new CO facility for the basin, commissioned in 2007 and 2015, respectively.
Both of these units have since been integrated into the company’s pipeline network, which expands over 200km and serves northern Europe.
The BASF site in Antwerp, which was established in 1964, is the largest chemical production site in Belgium and is the group’s second largest complex in the world, featuring around 50 facilities and over 580km of pipeline.
Karine Boissy-Rousseau, Managing Director of Air Liquide Benelux Industries, stated, “Given its industrial fabric, the Antwerp harbour basin is of strategic importance for our group in Belgium, where we have already substantially strengthened our presence through regular investments.”
“This contract renewal with BASF demonstrates our customer’s confidence in our ability to provide optimal solutions and to ensure reliable sourcing over the long term.”
gasworld Business Intelligence estimates that the industrial gas market in Belgium was worth $923m in 2015, with Air Liquide commanding a dominant market share of 62%. Research Analyst Toby Pimlott explained, “This contract is an example of the importance of the impressive pipeline structure in the Benelux region, with this supply mode being the largest revenue generating delivery method of industrial gas.”