Praxair, Inc. has started up a new air separation unit (ASU) in Northern China for the Yankuang Guohong Chemical Co., Ltd facility in Zoucheng City.

Through a long-term contract, Praxair’s new ASU will supply on-site oxygen (O2) and nitrogen (N2) to Yankuang, which currently has total assets of RBM40bn ($6.1bn), and will produce 3,000 tonnes of gas per day.

The Tier One company’s new ASU replaces the existing customer-owned plant and will be used in the coal gasification process for the production of methanol and downstream chemicals.

Will Li, President of Praxair China, confirmed, “Praxair’s world-class ASU plant is helping Yankuang achieve energy efficiency while providing enhanced safety and reliability performance. The success of this project is due to the strong cooperation between our companies, and we look forward to continuing a long and successful commercial relationship.”

According to gasworld Buisness Intelligence, the Chinese industrial gases market achieved revenues of approximately $9.2bn in 2014, making it the second largest industrial gases market after the US.