Air Liquide signs long-term supply agreement with SABIC-ExxonMobil JV, will build $140mn ASU in Texas

Air Liquide signs long-term supply agreement with SABIC-ExxonMobil JV, will build $140mn ASU in Texas
Published: 10 July 2019 - 3 a.m.
By: Martin Menachery
Air Liquide has signed a long-term agreement with Gulf Coast Growth Ventures (GCGV), a 50/50 joint venture between ExxonMobil and SABIC, to supply oxygen and nitrogen from its industrial gas pipeline network to GCGV’s planned ethane cracker facility located near Corpus Christi, in Texas. To support the new agreement and additional volumes, Air Liquide plans to invest nearly $140mn to build a new world-scale air separation unit (ASU) in Bay City, Texas, and related infrastructure investments.

Air Liquide will supply 2,000 tonnes per day of oxygen and 900 tonnes per day of nitrogen to GCGV’s planned 1.8 million tonnes per year ethane cracker facility. Air Liquide will also add nearly eight miles of pipeline to connect GCGV to its Gulf Coast Pipeline System, strengthening Air Liquide’s extensive capabilities throughout the Gulf Coast region of the US, and its position in the growing industrial basin of Corpus Christi, where it has been present since the mid-1930s.

In addition to delivering full requirements for oxygen and nitrogen to GCGV’s new petrochemical plant, the production capacity from the Bay City ASU, and its connection to Air Liquide’s expansive pipeline network along the Gulf Coast, will enable Air Liquide to retire older, less efficient assets. By modernising its asset fleet, Air Liquide provides enhanced competitiveness to its customers over the long term and reduces the carbon intensity of its operations, hence contributing to achieving its 2025 Climate Objectives.

With Air Liquide’s ability to provide large volumes of oxygen and nitrogen via its integrated production and supply network, customers can benefit from a safe, flexible and reliable supply to meet their growing demands.

Michael Graff, Air Liquide Group executive vice president and member of the executive committee, said: “Air Liquide is proud to be part of this word-class project and to collaborate with industry leaders like ExxonMobil and SABIC. This long-term agreement and investment in the new Bay City, Texas ASU, further demonstrates Air Liquide’s strong position and extensive capabilities in the Gulf Coast region of the US and its commitment to providing customers with sustainable, high-quality solutions to meet their growing needs safely, reliably and with excellence.”

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