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Air Liquide Builds China Gases Plant

25.09.2020 - French industrial gases group Air Liquide is spending about €60 million to build an air separation unit (ASU) in the Lingang Economic District, Tianjin Port Free Trade Zone, China. Air Liquide said it has been supplying industrial gases to this major industrial basin for more than 25 years and already operates seven production facilities there.

The new ASU will have capacity of more than 2,000 t per day of oxygen, allowing Air Liquide to support the growth of the chemical and steel industries in the Tianjin area, secured by a long-term supply agreement with an unnamed major customer.

Under the terms of the agreement, Air Liquide will build own and operate the facility, which will also produce nitrogen and argon and incorporate a dedicated capacity to support small- and-medium sized customers of liquid and packaged gases, including local hospitals requiring high-purity medical gases. The plant is scheduled to go into operation in 2022.

Deal reached with Sasol

Following the announcement on Jul. 29, Air Liquide has now entered into a purchase agreement to acquire Sasol’s oxygen production site, said to be the world’s largest, in Secunda, South Africa.

Under the terms of the deal, Air Liquide will own and operate the 16 ASUs at the site, which have a capacity of 42,000 t/d, in addition to the unit it already operates there. Subsequent to the acquisition, Air Liquide will supply various gases to Sasol under a long-term agreement with an initial term of 15 years.

Air Liquide said its initial investment will be about 8.5 billion South African Rand, or €440 million. The agreement remains subject to the usual conditions, including clearance by the South African Competition Authority, which are unlikely to be fulfilled before December.

Once the takeover is completed, Air Liquide, in coordination with Sasol, is aiming to cut the site’s CO2 emissions by 30-40% by 2030.