Praxair, Inc. has signed a long-term contract to supply industrial gases to South Korea-based Hyundai Oilbank under which it will build, own and operate four vacuum pressure swing adsorption (VPSA) plants.

Once built, the plants will supply a combined total of 750 tonnes per day (tpd) of oxygen (O2) to Hyundai Oilbank, which is the leading refinery in the Daesan petrochemical complex.

The VPSAs will be built at Hyundai Oilbank’s site at the complex, situated on the west coast of the Korean peninsula, and are scheduled to start up in 2017.

“This project also expands our presence in the region and lays the groundwork for our continued growth”

S.B Seo, President of Praxair Korea

S.B Seo, President of Praxair Korea, signified, “Praxair will work closely with Hyundai Oilbank, supporting the company’s growth in the oil refinery industry. This project also expands our presence in the region and lays the groundwork for our continued growth.”

Having been the first company to develop VPSA technology, Praxair now has over 20,000 tpd of VPSA capacity installed globally. In addition, it currently has $100m committed to small onsite plants under construction with scheduled start up dates in the next 12-18 months.

The South Korean industrial gases market was worth approximately $1.7bn in 2015, but sales of gases to the country’s refining sector only accounted for approximately 6% of that total last year. Praxair is currently third in terms of market share, behind both national leader Daesung Industrial Gases and Air Products.