DANBURY, Conn., August 9, 2004 — Praxair, Inc. (NYSE:PX) and CNOOC and Shell Petrochemicals Company Limited (CSPC) today signed an industrial gases supply contract for Praxair to supply CSPC with its oxygen and nitrogen requirements for its new $4.3-billion integrated petrochemical complex in Daya Bay, Huizhou, in Guangdong Province, China.
The heart of the complex is a world-scale condensate or naphtha cracker producing 800,000 tons per year of ethylene and 430,000 tons per year of propylene, integrated with downstream units producing different kinds of products. It is the largest capital investment for a Sino-foreign joint venture project to date in China.
Under the contract, Praxair will supply high purity oxygen and nitrogen from two new air separation units that will be built adjacent to the CSPC site in the center of the Petrochemical Industrial Park in Daya Bay Economic and Technical Development Zone. The supply of these products is scheduled to commence in May 2005. The construction of the air separation units is already well under way to meet the schedule. Praxair will construct oxygen and nitrogen pipelines to supply oxygen and nitrogen to all other chemical and petrochemical customers in Daya Bay Economic and Technical Development Zone.
"CSPC is investing approximately $4.3 billion in a large petrochemical site and related support facilities and utilities, and it is imperative that we have a high quality, reliable supply of oxygen and nitrogen to support these facilities," said Simon Lam Chung Kai, chief executive officer of CSPC. "After a very thorough evaluation of potential suppliers, on a wide range of criteria, CSPC chose Praxair. Praxair also has a strong history of reliable product supply in China supported by its global technology capabilities, as well as its commitment to safety and operational excellence."
"CSPC and Praxair have worked very closely together to assure the best possible supply systems for this major petrochemical project," said Mike Douglas, president, Praxair Asia. "The liquid products that will also be produced at this site will serve Praxair’s customers in the high growth industrial zones of Guangdong. With our two existing Praxair air separation units in northern Guangdong, Praxair will have an unparallel network of supply capability in Guangdong, in terms of reliability, capacity and geographic coverage."
About Praxair China
Praxair China, a subsidiary of Praxair, Inc., is the leading global industrial gases supplier in China, serving a diverse group of industries through the production, sale, distribution and value-added application of industrial gases. Praxair China, headquartered in Shanghai, operates eight wholly owned companies and 10 joint ventures.
About Praxair, Inc.
Praxair is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2003 sales of $5.6 billion. The company produces, sells and distributes atmospheric and process gases, and high-performance surface coatings. Praxair products, services and technologies bring productivity and environmental benefits to a wide variety of industries, including aerospace, chemicals, food and beverage, electronics, energy, healthcare, manufacturing, metals and others. More information on Praxair is available on the Internet at www.praxair.com.
About CNOOC and Shell Petrochemicals Company Limited (CSPC)
CNOOC and Shell Petrochemicals Company Limited (CSPC) is set to make petrochemicals history in China, building and operating a $4.3 billion petrochemicals complex in Daya Bay, Huizhou Municipality, Guangdong Province. The complex is located on the north coast of Daya Bay, about 80 kilometers northeast of Hong Kong. Additional information is available on the Internet at www.cnoocshell.com.
The joint venture partners are Shell Nanhai BV, a member of the Royal Dutch/Shell Group of Companies, with a 50 percent stake, and CNOOC Petrochemicals Investment Limited (CPIL), also 50 percent. CPIL is 90 percent owned by China National Offshore Oil Corporation (CNOOC) and the remaining 10 percent is owned by Guangdong Investment & Development Company, an investment company authorized by the People's Government of Guangdong Province.
Susan Szita Gore