Air Products/Debang to set up new US$250 mn syngas project in China

Air Products has set up new joint venture (jv) with Debang Xinghua Technology Co, a subsidiary of Jiangsu Debang Chemical Industrial Group Co, to build, own and operate a US$250 million coal-to-syngas processing facility in Xuwei National Petrochemical Park, Lianyungang City, Jiangsu Province, China.

Air Products will own 80% of the jv, and 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-tonne/year chemicals facilities. The project is expected to be onstream in 2023.

In addition, Air Products will be the exclusive purchaser of merchant liquid products 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 Shandong in East China.

Seifi Ghasemi, Air Products’ Chairman/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Cooperation Demonstration Zone’ strategy, accelerate the pace of scientific and technological innovation, eliminate outdated production capacity, and build a competitive and innovative green chemical enterprise group.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.”

Air Products also 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.