Praxair announced it has signed a long-term contract to provide hydrogen to Repsol, one of the world’s largest producers of petrochemicals.

The new steam methane reformer (SMR) will be constructed at Repsol’s La Pampilla Refinery, in the Callao district, near Lima, and is expected to start up in 2016.

“We are honoured to have been selected to build this hydrogen plant in Peru,” said Domingos Bulus, president of Praxair South America. “We look forward to demonstrating our strong capabilities in hydrogen production and to building a long-term commercial relationship with Repsol.”

The 12 million standard cubic feet per day SMR will use natural gas or naphtha as feedstock for the production of hydrogen. The La Pampilla refinery produces gasoline, liquefied petroleum gas, jet fuel, kerosene, diesel and asphalts, among other products, to serve the local market. The Repsol refinery will also produce low-sulphur diesel fuel that will comply with the strictest environmental standards and be used to serve customers in the local market.

“Through Praxair’s state-of-the-art plants, products and applications technologies, we are supporting our customers in their efforts to address the global trend of adopting more sustainable technologies,” added Bulus.