Airgas, Inc. (NYSE: ARG), Radnor, PA, No. 5 on MDM's list of top industrial distributors, plans to build a new 450 ton-per-day liquid carbon dioxide plant in the greater Houston area to replace its plant at the Shell Deer Park Refinery complex that is expected to close late this year.
Airgas has entered into long-term agreements with affiliates of Denbury Resources Inc. to transport and deliver feedstock of raw carbon dioxide to the new Airgas facility. The Airgas and Denbury relationship goes back to 2001, when Airgas sold its Jackson Dome reserves and the associated 183-mile pipeline in Mississippi to Denbury.
"With our long-term feedstock agreements we will be able to serve existing and secure new carbon dioxide customers in the petrochemical industry, as well as the traditional food chilling and beverage carbonation industries. We will also be supplying liquid carbon dioxide to our dry ice facility in LaPorte, Texas," said Phil Filer, president, Airgas Carbonic and Airgas Dry Ice.
Airgas expects construction to begin soon and to be completed in the fall. The industrial distributor currently operates 11 liquid carbon dioxide plants and 52 dry ice facilities supplying customers in the chemicals, food processing, food service, beverage, pharmaceutical and biotech industries.
