Business Deal Praxair Signs Long-Term Contract with BASF for New Plant
On completion, the new plant is expected to produce high-purity carbon monoxide and hydrogen from a stream of crude synthesis gas.
Danbury, Connecticut/USA — Praxair, a leading global industrial gas company, and BASF have signed a long-term agreement for Praxair to design, build, own, and operate a new syngas processing plant at BASF’s facility in Geismar, Louisiana.
The new plant, which will start up in 2020, will produce high-purity carbon monoxide and hydrogen from a stream of crude synthesis gas. Carbon monoxide is a raw material in the production of a range of specialty chemicals used in the housing and auto industries. Hydrogen is used to produce several chemical intermediates and clean fuels from refineries.
Coupled with an earlier investment that Praxair announced in April 2016, this will bring the company’s total new investment in the Geismar area to approximately 250 million dollars. These investments, including pipeline expansions, are examples of Praxair’s ongoing commitment to supporting growing customer demand and further increasing supply reliability in the Mississippi River chemical corridor.