Airgas to Build New Carbon Dioxide Plant

Specialty gas distributor Airgas (NYSE: ARG  ) announced it will build a new 450 ton-per-day liquid carbon dioxide plant to replace its plant at the Shell Deer Park Refinery complex that is expected to close later this year. Construction is expected to begin soon, and will be completed by the fall, as many of the existing assets from the current facility -- such as storage tanks, truck loading equipment, scales, and analytical equipment -- will be repurposed at the new plant.

Feedstock of raw carbon dioxide for the new facility will be provided through long-term supply agreements that Airgas signed with affiliates of Denbury Resources. The two companies have a decade-long relationship going back to 2001, when Airgas sold its Jackson Dome reserves, and the associated 183-mile pipeline in Mississippi, to Denbury. 

The new facility will supply carbon dioxide to existing and new customers in the petrochemical industry, as well as traditional food chilling and beverage carbonation industries. Airgas currently operates 11 liquid carbon dioxide plants, and 52 dry ice facilities, supplying customers in industries ranging from chemicals, pharmaceuticals, and biotech, to food processing, food service, and beverages.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2257563, ~/Articles/ArticleHandler.aspx, 7/30/2014 7:17:39 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement