Skip to main content

Air Products awarded coal-to-syngas contract in China

Published by
Hydrocarbon Engineering,

Air Products has been awarded a long-term onsite contract to supply syngas to Jiutai New Material Co. Ltd for its multi-billion dollar mono-ethylene glycol project in Hohhot, China.

Air Products 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 4Q21 and should add over US$0.20 to Air Products' earnings per share beginning in fiscal year 2022.

“This facility will be the first plant 100% owned by Air Products and is a prime example of our gasification strategy focused on building, owning and operating the facilities and supplying syngas under long-term onsite contracts,” said Air Products Chairman, President and Chief Executive Officer Seifi Ghasemi.

Air Products will invest approximately US$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.

Cui Lianguo, CEO of Jiutai, emphasised that, “We are looking forward to working with Air Products very closely to build and operate a first-class coal-to-chemicals plant.”

The contract continues Air Products’ extension of its industrial gas supply scope in China, following on from two coal gasification and syngas supply projects undertaken over the past year. In November 2017, Air Products announced a US$3.5 billion coal-to-syngas joint venture (JV) with Yankuang Group in Shaanxi Province; in April 2018, Air Products closed on a similar venture with Lu'An Clean Energy Company in Shanxi Province. “The coal gasification market in China is expected to grow significantly over the next 10 years. Owning and operating coal gasifiers and syngas purification units is a logical extension of our global hydrogen and syngas business,” said Phil Sproger, Vice President, Global Gasification and Asia Large Onsites Business Development, at Air Products.

Furthermore, Air Products announced that Saudi Aramco, Air Products, and ACWA Power recently signed a term sheet to form an over-US$8 billion gasification/power JV located at Jazan Economic City in Saudi Arabia. Earlier this year, Air Products acquired Shell's coal gasification technology and patents.

Read the article online at:

You might also like


Embed article link: (copy the HTML code below):


This article has been tagged under the following:

Shell news Saudi Aramco news Downstream contract news