gasworld Business Intelligence’s second country profile of 2016 focuses on the industrial gas market of Chile.

Four Tier One companies control the industrial gases business in the country – the largest being Linde – who enjoys a share of over 40%. Unlike most other similar markets, there are no significant independent companies currently operating. This is largely a consequence of acquisition – the second-largest company, Indura, was originally an independent company until Air Products acquired a majority share in 2012. In 2015, Air Products acquired an additional 30.5% of the company from the Briones family to bring its share to 97.8%.

Praxair entered into the market in 1996, through the acquisition of Liquid Carbonic. Through the construction of a number of air gas production facilities, and a successful tender to fulfil a large portion of the country’s medical oxygen demand, the company has established a market share of just under 10%.

Air Liquide operates mainly in the North of the country, with a major facility that features three onsite plants in Antofagasta in support of a copper smelter. The company has managed to achieve a market share of 14%, despite only entering the market in 1991. Air Liquide imports carbon dioxide and argon from its sister company in Argentina, and recently installed a new merchant ASU in the Santiago metropolitan region.

Just under half of all revenues are generated through the sale of packaged gases – gasworld Business Intelligence has located around 55 cylinder filling facilities in Chile. These are well distributed throughout the country – a distance of over 3,600km separates the most northerly (Iquique) and the most southerly (Punta Arenas) cylinder filling locations.

There is a significant amount of gas produced on a captive basis – where the end-user owns and operates its own gas production facility. Codelco, a state-owned copper company, operates a number of oxygen plants, with capacities ranging from 300 tonnes per day (tpd) to 800 tpd. Over 40% of the total hydrogen capacity is linked to captive production facilities, operated by chemicals and refining companies.

Over the past decade, the commercial industrial gas market in Chile has experienced growth of just under 8% p.a. gasworld Business Intelligence forecasts continued good growth of around 6% p.a., up to 2020.

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gasworld Business Intelligence will be publishing reports on the industrial gas markets of South America throughout 2016. To download a free 12-page sample report please click here. For any other enquiries – please contact intelligence@gasworld.com