Air Products has signed an agreement with a subsidiary of Shanxi Jincheng Anthracite Coal Mining Group for the supply of industrial gases to Phase One of Shanxi Jinmei Huayu Coal Chemical Co Ltd.’s coal-to-clean-fuels project in Jincheng City.
The Tier One company had previously signed a sale of equipment agreement with Jinmei Huayu to supply two air separation units (ASUs) – with a total capacity of more than 4,000 tonnes per day – for this project, which uses coal to produce clean fuels.
Now, Air Products intends to buy back the two ASUs for approximately $100m and supply industrial gases via pipelines to Jinmei Huayu under a long-term supply agreement, subject to finalisation of a buy-back agreement and any government and regulatory approvals. The ASUs are expected to be onstream in mid-2018.
Seifi Ghasemi, Air Products’ Chairman, President and CEO, said, “This is another great example of our strategic focus to deploy capital on high-quality industrial gas projects for growth. Our valued customer has entrusted the ASU operation and supply of safe and reliable industrial gases to us.”
Li Hongshuang, Party Secretary and Chairman of Shanxi Jincheng Anthracite Coal Mining Group, added, “Air Products is a leading global industrial gases supplier and a most ideal partner for us. This strategic cooperation leverages both parties’ advantages and positions us well for further development.”