Praxair, Inc. has secured a long-term contract to supply multinational chemical corporation the Dow Chemical Company (Dow) with both hydrogen (H2) and nitrogen (N2) in the US Gulf Coast.
As part of the contract, the US industrial gas giant has started up a new H2 facility which will recover by-product streams from Dow’s Freeport, Texas, operations. Praxair will supply high-purity H2 back to Dow in order to meet the company’s needs across Southeast Texas.
In addition, the Tier One corporation has signed a long-term contract to supply Dow with N2 for use in its chemical facility. Supply is expected to start in 2019.
Dow will use both gases to support the production of a number of specialty chemicals used in end-markets such as automobile manufacturing, coating applications and chemical intermediates.
Both gases will be distributed through Praxair’s extensive US Gulf Coast pipeline network to Dow’s Texas City and Freeport facilities, after Praxair recently extended its system by approximately 46 miles to service the Freeport area.
The US corporation’s H2 pipeline system is supported by multiple H2 plants as well as its 2.5 billion standard cubic foot (scf) H2 storage cavern. The industrial gas giant’s N2 pipeline system is built around multiple air separation facilities.
Dan Yankowski, President of Praxair’s Global Hydrogen Business, stated, “Freeport is Dow’s largest chemical site in the world and we are proud to be supporting their continues growth in the US Gulf Coast. This opportunity to further serve our customers in the region is why we extended our pipeline to Freeport.”
According to gasworld Business Intelligence, Praxair are currently the largest industrial gas company in the South West of the US. Research Analyst Toby Pimlott explained, “The company gained this market leadership position largely due the extensive network of production facilities that it owns along the Gulf Coast. This facility will expand on H2 revenues in the region, which already account for 30% of total industrial gas sales.”