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Air Liquide to invest $100 million for gas supply to SDI in Texas

By Mary Page Bailey |

Air Liquide (Paris, France) has signed a long-term agreement with Steel Dynamics, Inc. (SDI), one of the largest steel producers and metals recyclers in the United States, to supply gaseous oxygen, nitrogen, and argon to SDI’s new Electric Arc Furnace (EAF) steel mill in Sinton, Texas. To support the new agreement, Air Liquide plans to invest over 100 million U.S. dollars to install an Air Separation Unit (ASU) on its Gulf Coast pipeline network in Ingleside, Texas, and extend its pipeline network to SDI’s site.

The state-of-the art, energy efficient ASU will have the capacity to produce over 770 tons per day of oxygen, as well as nitrogen and argon to supply SDI’s planned 3 million tons per year steel mill starting up in 2021. Air Liquide will also add 45 kilometers of pipeline connecting SDI to its proprietary Gulf Coast Pipeline System, strengthening Air Liquide’s position in the U.S. Gulf Coast region and in the growing industrial basin of Corpus Christi where it has been present since the mid-1930s.

Air Liquide’s ability to provide large volumes of oxygen and nitrogen from Corpus Christi, Texas to New Orleans, Louisiana via its integrated production and supply pipeline network provides Air Liquide customers with an enhanced competitiveness over the long-term. The robust reliability and enhanced flexibility provided by Air Liquide’s pipeline network allows for efficient gas production and delivery that support SDI’s focus towards sustainability while contributing to meet Air Liquide’s climate objectives.

Air Liquide’s growth in the key industrial basin via its pipeline network will be supported by Air Liquide’s Smart Innovative Operations Center and leverage predictive analytics and digital technologies to optimize its operations and production units throughout the U.S.

Michael J. Graff, Executive Vice President and Executive Committee Member, Air Liquide Group, said: “Air Liquide is proud to support the growth of Steel Dynamics Inc. and to collaborate on this project, which will strengthen the U.S. steel industry through the establishment of the largest steel mill in Texas. The investment in this ASU and pipeline infrastructure will further enhance Air Liquide’s network capabilities and leadership position in the Gulf Coast, allowing us to meet the growing industrial gas demands of our customers in the region – safely, sustainably and reliably.”

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