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Air Products and Debong Chemical form joint venture to build coal-to-syngas project Author/Source: Huahua Network – Coal Chemicals Date: 2019-09-10 Clicks: 135 On September 9, Air Products of the United States announced that it would establish a new joint venture with Debong Xinghua Chemical Technology Co., Ltd., a subsidiary of Jiangsu Debong Chemical Industry Group Co., Ltd., to build, own, and operate a coal-to-syngas processing facility in the Xuwei Petrochemical Park in Lianyungang City, Jiangsu Province. Air Products will hold 80% of the shares in the joint venture, while DBS Group will hold 20%. The joint venture will own and operate the air separation units, gasification, and purification facilities, and will charge a fixed monthly fee under a 20-year contract to supply syngas to DB Group’s chemical plants, which have an annual production capacity of 350,000 tons. The project is expected to come online in 2023. In addition, Air Products will be the exclusive purchaser of the commercial liquid products manufactured by the joint venture, which in turn will supply sufficient raw materials to the rapidly growing chemical, optoelectronic, and general manufacturing industries in the Lianyungang area, as well as in the key surrounding cities in northern Jiangsu and southern Shandong. Seifi Ghasemi, Chairman, President and CEO of Air Products, said that this new project will advance our growth strategy for the gasification business in the Xuwu Petrochemical Park, while also providing an additional source of raw materials for our high-density production facilities in that area. The Xuwéi **Petrochemical Park is one of China’s seven national comprehensive oil refining and petrochemical parks. We are honored to establish a joint venture with DBS Group to own and operate gasification units and supply syngas, enabling DBS Group to produce the ammonia and other products required by its customers. In August 2019, Air Products announced the completion of its acquisition of GEPower’s gasification business. It is understood that Air Products’ acquisition of GE’s gasification business includes GE’s share in the 50-50 joint venture it formed with China Shenhua Coal-to-Oil Chemical Co., Ltd., as well as around 50 employees, including those from the joint venture. Air Products primarily invests in, builds, owns, operates, and maintains gas production plants under a gas sales business model. Current gasification projects involving billions of dollars include those in China’s Lu’an, Jutai, and Yankuang groups, as well as the project in Jizan, Saudi Arabia.