US industrial gases producer Air Products has announced it will buy Shell’s coal gasification technology business along with its patent portfolio for liquids (Residue) gasification. The oil and petrochemicals group has been at the forefront of the gasification market for more than 50 years.

The acquisition for which financial terms are not being disclosed, is expected to close “in the coming months,” Air Products said. Taking over the business will further support its previously announced projects such as Lu’An in Changzhi, Shanxi Province, China, and future projects, it added.

Seimi Ghasemi, chairman and president of Air Products said the deal will give his company access to more than 20 coal gasification plants as well as opportunities to “fully explore” outsourcing options to produce and supply syngas for customers. This, he said, supports Air Products’ continued focus on providing a full scope of industrial gases, rather than a strategic shift into technology licensing.

As part of the arrangement, the two companies have also formed a strategic alliance in liquids gasification to provide a range of solutions to the market, including engineering, procurement and construction activities and plant operations, as well as technology licensing.

Ghasemi said Air Products looks forward to an important role as a project operating partner for the supply of industrial gases in the strategic alliance and leveraging Shell’s technology lead in the liquids gasification area, as demonstrated at the world-scale Jazan combined Gasification/Refinery project in Jazan Economic City, Saudi Arabia.