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Air Liquide signs long-term supply agreement with Methanex

Published by , Editorial Assistant
Hydrocarbon Engineering,

Air Liquide has announced an agreement with Methanex Corp. to supply oxygen, nitrogen and utilities to its upcoming methanol plant expansion project in Geismar, Louisiana. To serve Methanex and its other customers in the industrial basin that encompasses Geismar and Baton Rouge, Air Liquide will invest more than US$270 million in two new large air separation units (ASUs) and infrastructure assets connected to its Mississippi River Pipeline, and significantly increase its production capacity in the US Gulf Coast region.

To support the levels of oxygen and nitrogen needed at Methanex’s third methanol plant in Geismar, as well as other customers along its Mississippi River Pipeline System, the ASUs will have a capacity of 2500 tpd of oxygen each – increasing the company’s Mississippi River Pipeline’s supply capacity by more than 25%.

Air Liquide’s agreement with Methanex further strengthens the company’s position in the Gulf Coast region, and the dynamic industrial basin between Geismar and Baton Rouge. The new ASUs are expected to start production in mid 2022 to support Methanex’s production of methanol.

This investment also enhances the competitiveness of Air Liquide in one of the major industrial basins by modernising its asset fleet and increasing energy efficiency, further reducing the carbon intensity of its operations and contributing to achieving the group’s 2025 Climate Objectives.

Michael J. Graff, Executive Vice President and Executive Committee Member, Air Liquide Group, said: “We appreciate the continued trust shown in us by a world-leader like Methanex and remain dedicated to delivering operational excellence through safe and reliable supply. Air Liquide’s significant investment to support this new endeavour by Methanex and enhance our infrastructure in the Geismar Basin further demonstrates our global commitment to energy efficiency, our collaborative approach to meeting the needs of customers, and highlights our outlook for the robust growth of industry in the Gulf Coast region of the US”

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