Praxair has reinforced its relationship with MEGlobal after announcing plans to build two new plants to supply the ethylene glycol (EG) manufacturer with industrial gases.
The US industrial gas giant has signed a long-term contract to supply MEGlobal, a wholly-owned subsidiary of EQUATE Petrochemical Company, with oxygen (O2) and nitrogen (N2) to its new EG plant being built in Freeport, Texas.
Plans for the first plant will see the Tier One player commission a new world-scale air separation unit (ASU). The site will deliver O2 to MEGlobal’s plant for use in its EG manufacturing process as well as into Praxair’s extensive industrial gas pipeline system.
As part of the project, of which financial details were not disclosed, Praxair will also construct a new carbon dioxide (CO2) purification and liquefaction facility, which will enable the corporation to serve the local food and beverage (F&B) industry.
Both plants are expected to start up in 2019.
”Our ASU and the expansion of our Gulf Coast pipeline system strengthens our ability to supply our customers throughout the region”
Scott Telesz, Executive Vice-President of Praxair
Scott Telesz, Executive Vice-President of Praxair, explained, “Praxair has been the provider of pipeline-supplied industrial gases to MEGlobal’s manufacturing plants in Canada for many years and we are proud to further expand our relationship for the long term through these projects.”
“Our ASU and the expansion of our Gulf Coast pipeline system strengthens our ability to supply our customers throughout the region with O2, N2 and argon (Ar). Our CO2 purification facility will also enable Praxair to meet the needs of customers in end-markets.”
The South West region of the US is the second largest industrial gas market in the country, valued at $4.3bn. Praxair are currently the largest industrial gas company in this market, commanding a share of 22%. The company recently built a new O2 plant in the South West in 2015 with three further plants planned to come on-stream in 2017.