Praxair (PX) Enters Long-Term Gas Supply Contract with MEGlobal

October 26, 2016 8:34 AM EDT

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Praxair (NYSE: PX) announced it signed a long-term contract with MEGlobal to supply oxygen and nitrogen to its new ethylene glycol (EG) plant being built in Freeport, Texas. MEGlobal, a wholly-owned subsidiary of EQUATE Petrochemical Company, is a world leader in the manufacture and supply of merchant monoethylene glycol and diethylene glycol.

Praxair’s new world-scale air separation unit (ASU), expected to start up in 2019, will provide oxygen to MEGlobal’s plant for use in its EG manufacturing process and into Praxair’s extensive industrial gas pipeline system. EG is used as a raw material in a variety of products, such as the manufacture of polyester fibers, polyethylene terephthalate resins for liquid and food containers, and other industrial applications. As part of this project, Praxair will also construct a new carbon dioxide purification and liquefaction facility. This gas supply will enable Praxair to serve customers in a variety of industries, including food and beverage where it is used to carbonate drinks, as well as to freeze, chill, preserve and package food. This facility is also expected to start up in 2019.

“Praxair has been the provider of pipeline-supplied industrial gases to MEGlobal’s manufacturing plants in Canada for many years and we are proud to further expand our relationship for the long term through these projects,” said Scott Telesz, executive vice president of Praxair. “Our ASU and the expansion of our Gulf Coast pipeline system strengthen our ability to supply our customers throughout the region with oxygen, nitrogen and argon. Our carbon dioxide purification facility will also enable Praxair to meet the needs of customers in end-markets such as food and beverage.”

“We have enjoyed a long-standing business relationship with Praxair during which the company has provided a reliable supply of industrial gases to our plants helping us to grow our business,” said Ramesh Ramachandran, president, MEGlobal International FZE. “We are pleased in the selection of Praxair as our industrial gas supplier for our new Gulf Coast EG project.”

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