Dominion Technology Gases has awarded a contract to supply industrial gases to multi-national BOC worth five million pounds over the next three years.
The supply agreement is expected to strengthen Dominion’s three million pound expansion into Norway, where it is setting up production and supply facilities.
The contract, which came into effect 1 September 2005, has renewable options for a further two years, which could see the value increase to seven million.
BOC will supply argon, helium, nitrogen, oxygen and carbon dioxide in cryogenic form to Dominion’s liquid tank farm in Aberdeen, Scotland. These gases can combine to make more than 400 different products used extensively in the oil, gas and related industries.
The supplies will come from Poland, Russia, Qatar, the Netherlands, the United States and other parts of the UK.
Dominion general manager Paul McAlister, said: “The contract will strengthen the supply chain demands of Dominion’s growing North Sea business in the offshore oil and gas industry.”
According to McAlister other suppliers were considered for the contract, but BOC proved to have the widest range of sources for the products.
He continued: “We felt that a supplier with a wide range of alternative sources would be able to cope better with any possible shortages in the market. We have a 20-year relationship with BOC and they have never failed to supply, even during times of extreme shortages. They were also able to demonstrate an ability to comply with the strict requirements of Dominion’s UKAS (United Kingdom Accreditation Service) 17027 standard.”
The Norwegian plant will replicate Dominion’s Aberdeen production facilities, while maintaining Internet-based administration and quality control systems in Scotland.
The main products coming out of Norway facilities are expected to be argon and argon mixes, nitrogen, helinite, laboratory gases and synthetic air. However, Dominion will supply any gases for which there is a demand.
The expansion will result in about 20 new jobs in Aberdeen, Bergen and Stavanger.
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Dominion Technology Gases
Dominion expands to Norway