Air Products has signed a long-term gas supply contract with Shandong Binhua New Material, a subsidiary of Befar Group, to support its flagship chemical project located in the Beihai Economic Development Zone of Binzhou City, Shandong Province, China.
Under the contract, Air Products will build, own and operate several onsite gas production facilities in the Binzhou Port-centered Chemical Industry Park in phases, including an air separation unit (ASU), to meet Binhua’s gaseous oxygen and nitrogen demand.
The ASU will also provide liquid products to other customers in the park and the growing merchant market in Shandong Provinces.
Commenting on the contract, Saw Choon Seong, China President at Air Products, said, “Befar Group is one of the most influential chemical companies in China. We are honoured by the trust our customer has placed in Air Products to support their important project. We look forward to deepening the cooperation with them as they accelerate their expansion plans and business transformation.”
“We have already established a strong presence in the strategic industry clusters in Shandong Province. Our latest investment will further strengthen our integrated gases supply position to support the rapid development of this world-class park in Binzhou as well as the transformation and upgrading of the chemical industry under China’s 14th Five-Year Plan.”
Jiang Sen, President of Befar Group, added, “We are very pleased to work with such a world-leading industrial gases company. The successful signing of this contract gives us great confidence that our cooperation with Air Products will continue to expand in the long run.”
All facilities will be fully operational in 2022.