Air Products: New syngas project in China advances gasification growth strategy

Air Products has announced a new joint venture (JV) with Debang Xinghua Technology Co. Ltd to build, own and operate a new coal-to-syngas processing facility in Jiangsu Province, China. Air Products will own 80% of the JV, located in the Xuwei National Petrochemical Park of Lianyungang City, and the Debang Group will own 20%.

The JV will own and operate the air separation unit, gasification and purification assets under a 20-year contract for a fixed monthly fee, supplying syngas to support Debang Group’s 350,000 tons-per-year chemicals facilities. The project is expected to be on-stream in 2023, gasworld understands, and represents a strategic investment of around $250m.

In addition, Air Products will be the exclusive purchaser of merchant liquid product from the JV facility, establishing a strong supply position to serve the high-growth chemical, opto-electronics and general manufacturing industries in the Lianyungang area and key surrounding cities north of Jiangsu and south of Shandongin East China.

As well as establishing new merchant supply capability in the area, the project also continues to advance Air Products’ gasification growth strategy. The Tier One player most recently announced the completion of an asset buyback and long-term gas supply agreement for Jinmei Huayu’s coal-to-clean fuels project in Jincheng City, Shanxi Province, China. Additional large-scale, multi-billion-dollar gasification projects include the Lu’An, Jiutai and Yankuang Group projects in China, as well as the Jazan project in Saudi Arabia.

Air Products completes Jazan complex

Air Products also completed the acquisition of General Electric Company’s (GE) gasification business and technology from GE Power this summer (August 2019), a purchase which includes GE’s share of its 50/50 joint venture with China Shenhua Coal to Liquid and Chemical Company, a subsidiary of China Energy Group.

Air Products completes GE gasification technology acquisition

Seifi Ghasemi, Air Products’ Chairman, President and CEO, said, “This new project furthers our gasification growth strategy in the Xuwei National Petroleum Park – one of seven national integrated oil refining and petrochemical parks in China – while also creating new merchant supply capability for us to serve a high density manufacturing base in the region.”

“We are honoured to form this JV with Debang Group to own and operate the gasification facilities and supply the syngas that will enable Debang Group to produce needed ammonia and other products for their customers.”

Zhao Xiang Hai, Debang Group’s Chairman, said, “This project is an important action for Debang Group to follow ‘China’s East, Central, and West Regional Cooperation Demonstration Zone’ strategy, accelerate the pace of scientific and technological innovation, eliminate outdated production capacity, and build a competitive and innovative green chemical enterprise group.”

“This project received strong support from the municipal government and the Xuwei Park’s management committee, and we believe this is only the beginning. We look forward to our strong collaboration with Air Products to provide quality, value, and high efficiency through this strategic project.”