SHANGHAI, China, February 5, 2004 — Praxair, Inc. (NYSE:PX) and CSPC, a joint venture between China National Offshore Oil Corporation (CNOOC) and Shell Petrochemicals Company Ltd., today announced they are finalizing an agreement 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 products. It will be the largest capital investment for a Sino-foreign joint venture project in China.
Under the agreement, 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 new chemical enclave in Daya Bay Economic and Technical Development Zone. The supply of these products is scheduled to commence in May 2005. Praxair will also produce liquid oxygen, nitrogen and argon and distribute these products to customers in the rapidly growing Guangdong region.
“CSPC will be investing approximately $4.3 billion in the cracker project and related downstream facilities and it is imperative that we have a high quality, reliable supply of oxygen and nitrogen to support these facilities,” said Simon Lam Chung Kai, chief executive officer of CSPC. “After a very thorough evaluation of potential suppliers over a wide range of criteria, CSPC chose Praxair. Another factor was Praxair’s strong history of reliable product supply in China, its global technology capabilities, as well as its commitment to safety and operational excellence.”
“CSPC and Praxair have worked very closely together to assure the best possible supply systems for this major petrochemical project,” said Mike Douglas, president, Praxair Asia. “The liquid products that will also be produced at this site will serve Praxair’s customers in the high-growth industrial zones of Guangdong.”
About CNOOC and Shell Petrochemicals Company Limited (CSPC)
CNOOC and Shell Petrochemicals Company Limited (CSPC) is set to make petrochemicals history in China, building and operating a US$ 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% stake, and CNOOC Petrochemicals Investment Limited (CPIL), also 50%. CPIL is 90% owned by China National Offshore Oil Corporation (CNOOC) and the remaining 10% is owned by Guangdong Investment & Development Company, an investment company authorized by the People's Government of Guangdong Province.
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 applications of industrial gases. Praxair China, headquartered in Shanghai, operates eight wholly owned companies and 10 joint ventures.
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.
Susan Szita Gore