Air Liquide to invest US$170 mln in air-separation unit to supply to Yuhuang Chemical

11-Feb-15

Air Liquide is to invest about US$170 mln in a unit that will supply oxygen for Chinese petrochemical giant Yuhuang Chemical’s planned methanol manufacturing complex in St. James Parish. With 5,500 tpa methanol capacity, the Yuhuang Chemical plant will be one of the largest methanol production facilities in USA, based on capacity. Air Liquide said it has entered into a long-term agreement to supply Yuhuang Chemical with 2,400 tons of oxygen per day. Air Liquide will build an air-separation unit for production of oxygen, nitrogen and argon. That unit will be connected to Air Liquide’s Louisiana pipeline system, as well as Yuhuang Chemical’s St. James site. The new Air Liquide facility is scheduled to begin operations in H2-2017. Air Liquide also recently signed a contract to license its MegaMethanol process technology to Yuhuang Chemical. The process, which converts natural gas to methanol, is part of Air Liquide’s proprietary technology portfolio. Yuhuang Chemical officials have said construction on its complex will begin in 2016, with the first US$750 mln phase of its methanol project beginning operations by 2018. After the methanol plant is completed, the company will build a second US$500 mln methanol plant and reach an annual capacity of 3.3 mln tpa of methanol. The third phase will include a methanol derivatives plant that will produce intermediate chemicals. “Our new agreement with Air Liquide for our first world-scale methanol unit in the U.S. will be integral in supporting our ambition of becoming a global player in the petrochemical industry,” said Charlie Yao, chief executive officer of Yuhuang Chemical. Michael J. Graff, Air Liquide’s senior vice president for North America and South America, said Air Liquide’s collaboration with Yuhuang Chemical to supply its oxygen needs in the U.S. Gulf Coast supports the Chinese company as it broadens its business in the U.S. and abroad. Yuhuang Chemical, a subsidiary of the $5 billion Shandong Yuhuang Chemical Co. Ltd. based in Shandong Province, is making its first foray outside of mainland China with the facility.