China: Plant Construction Air Products, Debang Group Form JV for New Syngas Facility
Air Products has entered into a JV with the Debang Group to build, own and operate a coal-to-syngas processing facility in the Jiangsu Province of China. Under the terms of the agreement, Air Products will own 80 % of the JV while the remaining 20 % will be with the Debang Group.
Lehigh Valley/USA – Air Products has recently announced a new joint venture (JV) with Debang Xinghua Technology Co., a subsidiary of Jiangsu Debang Chemical Industrial Group Co. (Debang Group), to build, own and operate a coal-to-syngas processing facility. The new plant will be located in Xuwei National Petrochemical Park, Lianyungang City, Jiangsu Province, China.
Air Products will own 80 per cent of the JV, and Debang Group will own 20 per cent. The JV will own and operate the air separation unit, gasification and purification assets under a 20-year contract for a fixed monthly fee, supplying syngas to support Debang Group's 350,000 tonnes-per-year chemical facilities. The project is expected to be onstream in 2023.
In addition, Air Products will be the exclusive purchaser of merchant liquid products from the JV facility, establishing a strong supply position to serve the high-growth chemical, opto-electronics and general manufacturing industries in the Lianyungang area and key surrounding cities to the north of Jiangsu and south of Shandong in East China.
Seifi Ghasemi, Air Products' chairman, president and chief executive officer, said, "This new project strengthens our gasification growth strategy in the Xuwei National Petroleum Park—one of seven national integrated oil refining and petrochemical parks in China—while also creating new merchant supply capability for us to serve a high density manufacturing base in the region. We are honored to form this JV with the Debang Group to own and operate the gasification facilities as well as supply syngas that will enable the Debang Group to produce the required ammonia and other products for their customers."
Zhao Xiang Hai, Debang Group's chairman, said, "This project is an important action for the Debang Group to follow the 'China's East, Central, and West Regional Cooperation Demonstration Zone' strategy, accelerate the pace of scientific and technological innovation, eliminate outdated production capacity, and build a competitive and innovative green chemical enterprise group. This project received strong support from the municipal government and the Xuwei Park's management committee, and we believe this is only the beginning. We look forward to our strong collaboration with Air Products to provide quality, value, and high efficiency through this strategic project."