Air Products plans to build, own and operate a new liquid nitrogen production facility in West Texas to serve the oil and gas industry in the Permian Basin.

The new facility, which will have an approximate 250 ton per day (tpd) capacity, will strengthen Air Products’ existing leadership position in supplying the region’s oilfield services market.

The plant, to be located in Midland-Odessa, is scheduled to be on-stream in 2015.

Beyond the core focus on the Permian Basin area, the new facility will expand Air Products’ existing nitrogen production and distribution network in Texas, New Mexico, Oklahoma and Kansas.

This, the company claims, will translate into increased customer supply reliability through Air Products’ extensive network of production plants, truck fleet, portable storage, and product staging areas to meet the dynamic needs of the oilfield services market.

“The location of this new merchant facility demonstrates our commitment to the oilfield services industry in the Permian Basin and the Mid-Continent region”

Nelson Squires, Air Products

“The decision to build this facility will expand our nitrogen supply position for the fast-growing oilfield services market,” commented Nelson Squires, Vice-President and General Manager – North America Merchant Gases at Air Products.

“The plant will assist in meeting increased liquid nitrogen demand for coiled tubing, fracturing and other oilfield applications, as well as enhance our responsiveness level to customers for field deliveries and services.”

“The location of this new merchant facility demonstrates our commitment to the oilfield services industry in the Permian Basin and the Mid-Continent region,” Squires added.

The new facility will be an FDA certified plant and will supply nitrogen to other local industries such as food and metals processing.