Praxair China has signed a long-term supply contract with Yankuang Guohong Chemical Co., Ltd. and Yankuang Group to supply industrial gases to its coal gasification process operations in northern China.

The gases will be used in the company’s coal gasification process for the production of methanol and downstream chemicals at the chemical park in Zoucheng city.

To meet the gas demand of Yankuang Guohong for its coal to chemical project, Praxair will construct a large air separation facility with a capacity of 3,000 tons of oxygen per day and purchase Yankuang Guohong’s existing air separation units.

The new plant is scheduled to start up in late 2014 and will replace Yankuang Guohong’s existing air separation units.

It will be the fourth large capacity air separation plant of 3,000 tons per day or greater that Praxair has won in China. Two of these plants, of similar capacity, have been built and are currently operating in Zhenjiang, Jiangsu province and Wuwei, Anhui province, to supply customers in the coal-based chemical industry.

Of this most recent contract, President of Praxair Asia Dr. Anne Roby said in a statement, “We are pleased to work with Yankuang Group, the leading coal-based chemical and gasification technology enterprise in China.”

“We look forward to building a long-term and sustainable commercial relationship with Yankuang and contributing to the industrial and economic development of this region.”

Wang Xin, Chairman of Yankuang Group, added, “With Praxair China’s leading technology, excellent management team and strong financials, the strategic cooperation between Yankuang Group and Praxair will be a win-win relationship.”

“We believe this project will achieve great success,” he concluded.

gasworld understands that the liquid oxygen, nitrogen and argon produced from the existing air separation plants and the new facilities will be integrated with Praxair China’s liquid production and distribution network in the region – improving distribution efficiency and reliability to the customers in the rapidly growing regional merchant market.