Air Liquide has been selected by Chinese petrochemical company Yuhuang Chemical as the supplier of oxygen for its new world-scale methanol manufacturing complex to be built in St. James Parish, Louisiana, officials announced on Tuesday.

Air Liquide is investing around $170 million on the project, according to company representatives.

The new Yuhuang Chemical manufacturing complex will produce approximately 5,000 tpd of methanol, making it one of the largest methanol facilities in the US based on capacity.

“Our new agreement with Air Liquide for our first world-scale methanol unit in the US will be integral in supporting our ambition of becoming a global player in the petrochemical industry," said Charlie Yao, CEO of Yuhuang Chemical.

Air Liquide has entered into a new long-term agreement to supply Yuhuang Chemical with 2,400 tpd of oxygen. To do that, Air Liquide will build a new, energy efficient air separation unit (ASU) producing oxygen, nitrogen and argon. 

Connected to Air Liquide’s extensive pipeline system in Louisiana, providing enhanced reliability of supply, the ASU is expected to be commissioned by the second half of 2017.

Air Liquide, via its global engineering and construction activity, also recently signed a contract to license its leading MegaMethanol process technology to Yuhuang Chemical. The MegaMethanol Technology, which converts natural gas to methanol, is part of Air Liquide’s proprietary technology portfolio.

In providing a stable long-term oxygen supply and proprietary natural gas-to-methanol conversiontechnology, Air Liquide says it is further demonstrating its position in offering an integrated value proposition for large-scale methanol production.

"Air Liquide is pleased to enter into this new collaboration with Yuhuang Chemical to supply their oxygen needs in the US Gulf Coast," said Michael J. Graff, senior vice president for the Americas at Air Liquide. "The sustainable value we create through our safe, reliable and high-quality technology solutions supports them as they broaden their business in the US and abroad.”