Praxair has signed a long-term agreement to supply oxygen (O2) to US Methanol LLC’s new facility in Institute, West Virginia.

The customer’s facility will produce methanol for use in the production of plastics, varnishes, medicines, adhesives and textiles.

The Tier One corporation will build a vacuum pressure swing adsorption (VPSA) plant that is expected to start up in 2019.

“We are proud to partner with US Methanol as they build their first facility in West Virginia,” said Todd Lawson, Vice-President of East Region for Praxair’s US Industrial Gases Business. “Praxair has a long-term expertise building and operating VPSA plants, and we look forward to providing them with a safe and effective solution.”

US Methanol’s West Virginia facility will be a major regional manufacturer benefiting from the abundance of gas in the Marcellus and Utica shale fields. The low cost of producing natural gas and related byproducts is expected to expand the chemical industry in the area. The company selected the site because of its access to extensive water, rail and highway systems and low cost raw materials.

“We chose Praxair because of their reputation as a reliable supplier,” said Frank Bakker, US Methanol CEO. “They are an industry leader in VPSA technology, and we look forward to working with them as we expand our business in a region that is positioned for future growth.”