Aug 10 2004
Praxair, Inc. and CNOOC and Shell Petrochemicals Company Limited (CSPC) today signed an industrial gases supply contract for Praxair to supply CSPC with its oxygen and nitrogen requirements for its new $4.3-billion integrated petrochemical complex in Daya Bay, Huizhou, in Guangdong Province, China.
The heart of the complex is a world-scale condensate or naphtha cracker producing 800,000 tons per year of ethylene and 430,000 tons per year of propylene, integrated with downstream units producing different kinds of products. It is the largest capital investment for a Sino-foreign joint venture project to date in China.
Under the contract, Praxair will supply high purity oxygen and nitrogen from two new air separation units that will be built adjacent to the CSPC site in the center of the Petrochemical Industrial Park in Daya Bay Economic and Technical Development Zone. The supply of these products is scheduled to commence in May 2005. The construction of the air separation units is already well under way to meet the schedule. Praxair will construct oxygen and nitrogen pipelines to supply oxygen and nitrogen to all other chemical and petrochemical customers in Daya Bay Economic and Technical Development Zone.
"CSPC is investing approximately $4.3 billion in a large petrochemical site and related support facilities and utilities, and it is imperative that we have a high quality, reliable supply of oxygen and nitrogen to support these facilities," said Simon Lam Chung Kai, chief executive officer of CSPC. "After a very thorough evaluation of potential suppliers, on a wide range of criteria, CSPC chose Praxair. Praxair also has a strong history of reliable product supply in China supported by its global technology capabilities, as well as its commitment to safety and operational excellence."
"CSPC and Praxair have worked very closely together to assure the best possible supply systems for this major petrochemical project," said Mike Douglas, president, Praxair Asia. "The liquid products that will also be produced at this site will serve Praxair's customers in the high growth industrial zones of Guangdong. With our two existing Praxair air separation units in northern Guangdong, Praxair will have an unparallel network of supply capability in Guangdong, in terms of reliability, capacity and geographic coverage."
For more information petrochemicals, click here.