Air Liquide has signed a new long-term contract with Maoming Petrochemical Co. (MPCC), a subsidiary of China Petroleum & Chemical Corp. (Sinopec), officials announced on Tuesday.

Under the terms of the new agreement, Air Liquide will invest around 40 million euros in a new state-of-the-art ASU (air separation unit), with a total capacity of 850 tpd of oxygen.

Expected to start operations in the second quarter of 2017, the new ASU will supply industrial gases including oxygen and nitrogen to the customer's new ethylene oxide plant as well as to its existing one. 

"Air Liquide has developed a strong business relationship with MPCC since 2012," said Francois Venet, vice president for the Asia-Pacific region and a member of Air Liquide's executive committee. "By choosing to outsource their industrial gases need on this new project, MPCC shows its confidence in Air Liquide's capability to provide innovative solutions and deliver safe operations, which further strengthens our strategic partnership. This new agreement also illustrates our wish to develop our activities in China over the long term."

The ASU, located in Maoming City, Guangdong Province, will be designed and supplied by Air Liquide's engineering and construction teams using leading technologies to offer energy efficiency as well as optimalreliability and safety. The ASU will be owned and operated by ALMPCC, the joint venture of Air Liquide China and MPCC established in June 2012.

"It's our pleasure to join hands with Air Liquide again," said Lu Weiqun, deputy GM of MPCC and vice chairman of the ALMPCC board. 

"By combining their advanced technology and management expertise with MPCC's experience in the local market, ALMPCC has seen great successes in recent years," he added. "Through the new project, we expect ALMPCC to contribute more to the development of MPCC as well as to that of the local economy."