Air Products, a world-leading industrial gases company, has signed an agreement with a subsidiary of Shanxi Jincheng Anthracite Coal Mining Group, China’s leading coal mining conglomerate, for the supply of industrial gases to Phase One of Shanxi Jinmei Huayu Coal Chemical Co Ltd.’s (Jinmei Huayu’s) coal-to-clean-fuels project in Jincheng City, Shanxi Province.
Previously, Air Products signed a sale of equipment agreement with Jinmei Huayu to supply two air separation units (ASUs)—with a total capacity of over 4000 tpd—for this project, which uses coal to produce clean fuels.
Now, Air Products intends to buy back the two ASUs for approximately $100 million and supply industrial gases via pipelines to Jinmei Huayu under a long-term supply agreement, subject to finalization of a buy-back agreement and any government and regulatory approvals. The ASUs are expected to be onstream in mid-2018.
Seifi Ghasemi, Air Products’ Chairman, President and CEO, and Li Hongshuang, Party Secretary and Chairman of Shanxi Jincheng Anthracite Coal Mining Group, witnessed the contract signing.
Ghasemi said: “We are delighted to deepen our cooperation with one of China’s leading energy groups, Shanxi Jincheng Anthracite Coal Mining, on this significant coal-to-clean energy project. This is another great example of our strategic focus to deploy capital on high-quality industrial gas projects for growth. Our valued customer has entrusted the ASU operation and supply of safe and reliable industrial gases to us. We appreciate their confidence in us and look forward to broader cooperation with the group in future.”
Hongshuang said, “Air Products is a leading global industrial gases supplier and a most ideal partner for us. This strategic cooperation leverages both parties’ advantages and positions us well for further development.”
This agreement follows Air Products’ recent major investments with Lu’An in Changzhi, Shanxi Province and Yankuang in Yulin, Shaanxi Province to support China’s ongoing transformation and upgrade of its coal chemical industry that targets products with higher added-value and sustainability.