USA: Industrial Gases Praxair Signs Long-Term Supply Agreement with Celanese

Praxair has signed a 15-year agreement to supply Celanese Corporation with carbon monoxide, as well as oxygen and nitrogen, in the U.S. Gulf Coast.

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Danbury/USA — The company will deliver high-purity carbon monoxide to Celanese from a new, state-of-the-art carbon monoxide and hydrogen plant that will be built, owned and operated by Praxair. To meet the requirements of other new customers along the U.S. Gulf Coast the industrial gas supplier plans the expansion of its hydrogen pipeline network to enable the supply of 80 million cubic feet per day (approx. 2.26 million cubic meter) of co-produced hydrogen. Additionally, a new air separation unit will be built on its nitrogen and oxygen pipeline network that will provide the industrial gases required by Celanese.

According to the company, these plants and pipeline expansions require a combined investment of more than $ 300 million. The new facilities and pipeline assets is set begin operations in the year 2020.

Praxair’s pipeline systems are currently supported by multiple hydrogen and air separation plants and product storage capabilities, including the company’s 2.5 billion-cubic-foot (approx. 70 million cubic metres), high-purity hydrogen storage cavern. Together with the previously announced Geismar, Louisiana, project that will start up in the second half of 2018, the supplier's carbon monoxide capacity along the U.S. Gulf Coast will more than double. The increased demand for industrial gases in the region results from the availability of abundant, low-cost shale gas in the U.S.

“Our sourcing effort at Celanese was driven by the goal to secure a stable and reliable supply of critical raw materials for our operations to enable us to reach our future growth and financial goals,” said Mark Rohr, Celanese chairman and chief executive officer. “As we evaluated our future industrial gas requirements, Praxair stood out as the clear choice, and Celanese is pleased to reach this mutual, multi-year agreement.”

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