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Air Products signs agreement for the construction of US$3.5 billion Chinese coal-to-syngas facility

Published by , Assistant Editor
World Coal,

In the presence of US President, Donald Trump and Xi Jinping, President of the People’s Republic of China, Air Products’ Chairman, President and CEO, Seifi Ghasemi and Chairman of Yankuang Group Co., Ltd, Li Xiyong, signed an agreement for the construction of a US$3.5 billion coal-to-syngas production facility in Yulin City, Shaanxi Province, China.

The agreement was signed in the Great Hall of the People as part of the Trade Mission to China led by the US Department of Commerce.

Under the agreement, Air Products and Shaanxi Future Energy Group Co. Ltd (SFEC), a subsidiary of Yankuang Group, are to form an Air Products majority-controlled joint venture company which would build, own and operate an air separation, gasification and syngas clean-up system to supply the SFEC site.

The air separation units are expected to produce approximately 40 000 tpd of oxygen to support the production of about 2.5 million nm3/hour of syngas. SFEC would supply coal, steam and power and receive syngas under a long-term, onsite contract.

Air Products currently supplies SFEC’s Phase 1 project in Yulin with 12 000 tpd of oxygen. The addition of Phase 2 would make this complex one of the largest coal to fuel and chemical facilities in China, with SFEC Phase 2 producing four million tpy of liquid fuels and downstream chemicals.

The parties are committed to finalising the agreements as soon as possible, with the overall project expected onstream in 2021.

Ghasemi said: “Air Products is delighted to announce this significant expansion of our already strong relationship with one of China’s largest energy companies. This new agreement confirms Yankuang’s trust in us, built on the supply reliability we have delivered for their Phase 1 project. It is another excellent example of Air Products’ strategy to grow profitably by deploying capital into world-scale industrial gas projects.”

Xiyong added: “We look forward to further extending our excellent partnership with Air Products, levering their technology, reliability and expertise to enable us to produce even more high-quality fuel and chemical products that drive growth and support sustainable development.”

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