Air Products has been awarded a long-term onsite contract to supply syngas to Jiutai New Material for their multi-billion dollar mono-ethylene glycol project in Hohhot, China.
Lehigh Valley/USA — The engineering company will build, own and operate the air separation, gasification, and gas clean up processing facility that will include its recently acquired Shell gasification technology. The project is expected to come onstream in the fourth quarter of Air Products’ fiscal year 2021.
This facility will be the first plant 100 % owned by Air Products. According to Air Products Chairman, President and Chief Executive Officer Seifi Ghasem, the project is part of the company's gasification strategy focused on building, owning and operating the facilities and supplying syngas under long-term onsite contracts. In this area, the company acquired the Shell gasification technology, signed an agreement with Yankuang in China, and recently announced the world-class $ 8 billion project located at Jazan Economic City (JEC) in Saudi Arabia.
Air Products will invest about $ 650 million to build, own and operate the facility, and will receive a fixed monthly fee under the long-term contract. The facility will be designed to produce over 500,000 Nm3/hr of syngas, and will be comprised of five gasifiers, two approximately 100,000 nm3/hr air separation units (ASU), with syngas purification and processing, as well as associated infrastructure and utilities. Jiutai will supply the coal feedstock and take all output from the plant.
Building on the Lu’An and Yankuang gasifier projects, this will be the supplier's third project in China that includes coal gasification and syngas supply. The Jiutai Group was established in 2002 and is a large scale private enterprise engaged in the production of Methanol, Olefins, and other chemical products.