Methanol Chemicals Company (Chemanol) has entered into a 20-year supply agreement with Air Products Qudra, aiming to enhance its methanol production capabilities as part of an extensive revamp project.
The partnership, which is set to unfold over the next 18 months, will see Air Products Qudra providing the essential industrial gases needed to modernise Chemanol’s facilities, a move expected to elevate the company’s operational efficiency within the methanol sector.
The agreement highlights Chemanol’s strategic commitment to “securing a reliable source of high-quality industrial gases” as it seeks to stay competitive in the chemical industry, according to a company statement.
“This collaboration positions Chemanol to better meet future market demands,” the company stated, indicating that the agreement with Air Products Qudra aligns closely with its long-term objectives for growth.
Financial details have not been revealed, with Chemanol stressing that the costs will depend on market conditions at the time of project startup. The company remains optimistic about the deal’s potential to “optimise production processes” through Air Products Qudra’s experience in the industrial gas sector.
Earlier in 2024, Air Products announced investments in several notable projects, such as a $1.4 billion clean hydrogen complex in Saudi Arabia, designed to supply over 650 tonnes of hydrogen per day.
Air Products also launched an ambitious green hydrogen project in Oman, projected to cost approximately $7 billion. This large-scale initiative, based in the Duqm Special Economic Zone, aims to produce up to 300,000 tonnes of green hydrogen annually, catering to both local and international demand.
The Middle East is becoming a hub for large-scale industrial gas projects, driven by regional goals for sustainable energy and advanced production technologies. Among these, Saudi Arabia’s NEOM project stands out, featuring a $5 billion green hydrogen plant developed by a consortium including Air Products.
Set to produce 650 tonnes of green hydrogen daily, the plant will be powered by renewable solar and wind energy. ADNOC in the UAE is also advancing blue hydrogen production at its Ruwais facility, aiming to supply global markets while reducing carbon emissions in heavy industries.
