Air Products has announced that a new joint venture company, TecnologÃa en NitrÃ³geno, S. de R.L. de C.V., formed with its Grupo Infra partner, signed a 10-year contract with Pemex Exploracion y Produccion (PEP) for the supply of 90 MMSCFD (3,200 T/D) of nitrogen for injection into oil fields near Villahermosa, Tabasco, Mexico.
The supplied nitrogen will be used for enhanced oil and natural gas recovery. The joint venture company executing the agreement for nitrogen supply will use project financing for this effort.
Air Products has been supplying nitrogen to the oil and gas industry for enhanced recovery since the early 1980s. Enhanced oil recovery provides continued growth opportunities for Air Products and complements the company's leading position in supplying hydrogen to refineries for the production of cleaner burning transportation fuels.
'We are very pleased that Pemex has selected our new joint venture for the safe and reliable supply of nitrogen to the Jujo-Tecominoacan fields. Air Products and its Grupo Infra partner have been supplying industrial gases to Pemex for over 25 years, and this project will further broaden and strengthen that relationship,' said Mark Bye, group vice president for Air Products.
The air separation plant supplying the nitrogen will be constructed and is to be on stream in November 2007. Air Products will provide the engineering and imported equipment. CryoInfra will supply the local equipment and construction, and will operate the plant. Grupo Infra's leading industrial gas position in Mexico combined with Air Products' state-of-the-art air separation technology were keys to being awarded this project.