Air Products (APD) has signed an agreement with a subsidiary of Shanxi Jincheng Anthracite Coal Mining Group 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 4,000 tons per day—for this project, which uses coal to produce clean fuels.
Now, Air Products intends to buy back the two ASUs for approximately USD 100M 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.
