Air Products has signed a long-term contract with Henan Xinlianxin Fertilizer (Xinlianxin), under which it build, own and operate an air separation unit (ASU) and integrated gas liquefier in Henan Province, China.
The ASU will produce approximately 2,000 tpd of gaseous oxygen for Xinlianxin's expanding fertilizer plant in Xinxiang.
The liquefier will produce over 250 tpd of liquid products, namely oxygen, nitrogen, and argon, for the region's growing merchant gases market.
The Air Products ASU and liquefier are to be onstream in 2013.
"We are pleased to be supplying Xinlianxin's tonnage industrial gas needs for its fertilizer plant expansion, said Steve Jones, Air Products' China president. Our ASU product offering of this specific size was the right solution for the customer's needs. This is the first time Xinlianxin has contracted with a third-party to supply industrial gases, and we are honored by that trust.
"From a merchant gases opportunity, this location meets Air Products' strategic goals in two ways, he continued. First, the facility's liquefier piggybacks on the ASU location to provide for integrated and efficient production of liquid gas products.
Secondly, it will make Air Products the first global industrial gas producer in this market. The location is within a key region that Air Products believes will grow in industry segments we already serve globally including chemicals, electronics, fabrication and glass."
"Air Products' investment in Xinxiang brings a long-term and strategic partnership with Xinlianxin," said Liu Xingxu, chairman and general manager of Xinlianxin. "The collaboration will help Xinlianxin to improve efficiency, reduce cost and sharpen its competitiveness. It is a win-win deal for both companies."
The ASU train will include design enhancements to minimize operating costs through energy efficiency, according to company officials.
Technology advancements and other productivity improvements support Air Products' overall sustainability goals of reducing energy consumption and emissions, the company said.
"Our goal is always to provide our worldwide customers with the lowest cost and newest advanced technology ASU facilities which offer energy efficiencies that benefit their production operations and the environment," said Jones.
Air Products will also locate a liquid bulk terminal facility at this location to serve the varied liquid gas merchant customers in the region, it said.
Xinlianxin is the largest fertilizer producer in Henan Province and the fourth largest coal-based urea producer in China.
Xinlianxin is a producer of urea, methanol and compound fertilizer using coal as a feedstock. It is a wholly-owned subsidiary of China XLX Fertilizer.