Air Products will acquire Shell’s gasification business and its portfolio of patents for slag oil gasification
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On January 9, 2018, Air Products announced that it had reached an agreement with Royal Dutch Shell PLC (referred to as “Shell”) to acquire Shell’s gasification business and its portfolio of patents related to slag oil gasification. The financial terms are not disclosed to the public, and the acquisition is expected to be completed in the coming months. As a global leader in industrial gases, Air Products has expanded its on-site gas supply services to include the production of syngas through gasification, to support major projects. By acquiring Shell’s gasification capacity, the company will further increase its support for existing projects such as those in Changzhi, Shanxi, led by Lu’an, as well as future projects. Shell has been at the forefront of gasification technology innovation for the past 50 years. Gasification technology can convert various low-value feedstocks into syngas with low emissions. Air Products can supply syngas to customers to produce higher-value products. Greg Smith, President and CEO of Air Products, said, “Shell’s technology is already in use at more than 20 gasification plants. Through this acquisition, we can gain access to it and have the opportunity to fully explore the possibilities of outsourcing syngas production and supply to serve customers who plan to use gasification processes.” ”Ge Simin emphasized that this acquisition supports Air Products’ long-standing strategic focus on providing a full range of industrial gases, and it does not mean that the company is shifting its strategy toward technology licensing. In addition, the two companies have formed a strategic alliance to jointly provide a range of solutions for the commercialization of residue oil gasification, including engineering, procurement, construction, plant operation, and technology licensing. Ge Simin said that Air Products looks forward to playing an important role as an operational partner for industrial gas supply projects within this strategic alliance, and to making full use of Shell’s leading technologies in the field of residue oil gasification, as demonstrated in the world-class Jazan Refining and Petrochemicals Integrated Project in Jazan Economic City, Saudi Arabia. Author/Source: Yahuah Coal Chemicals
This post was last edited by yangshaoj2005 on 2018-1-18 at 08:45. It achieves two goals at once: it not only allows the company to move directly from being a supplier of air products to becoming a key provider of processes in the coal chemical industry, by using AP’s existing gas supply channels to produce syngas and then expanding into downstream products such as methanol and olefins; it also enables the company to enter the heavy oil processing market through residue lightening technologies, thus creating a tripartite structure consisting of AP’s industrial gases business, coal chemical operations, and oil refining activities. Big move!
It’s indeed a substantial effort; I wonder if there are any companies in the domestic market that can compete with it
It’s coming with great force; from now on, it will directly turn the island into a BOT facility
The power of capital – through combinations and separations – can, in just seconds, create a giant in an industry!
It has always been the mindset that determines the path forward; extending the industrial chain can enhance survival capabilities and profitability.
Yingde Gas recently has a gasification island project in Yichang, Hubei. But in terms of development, Yingde can still only be considered an attempt.
In simple terms, it comes down to whether there is sufficient capital, whether the gasification technology is under one’s own control, and whether there are qualified professionals and operational staff available
Wish Air Products continued success. Keep going! ! !
A powerful alliance to leverage the advantages of the entire chain