Wedoany.com Report-Dec.9, Air Liquide has signed a long-term contract extension with a subsidiary of Shaanxi Yanchang Petroleum Group and will invest around €25 million to modernise its air separation unit (ASU) in Yulin, Shaanxi Province, a major industrial centre in China.

The upgrade will convert the existing steam-powered ASU to an electricity-driven system, delivering an immediate annual CO₂ emissions reduction of 224,000 metric tons. Through progressive integration of lower-carbon electricity sources, total annual reductions are projected to reach 550,000 metric tons once fully implemented.

The revamped facility will also increase oxygen production capacity by 10%. The modernised unit is scheduled to become operational by the end of 2027, while Air Liquide ensures uninterrupted gas supply to the customer throughout the transition period.

The agreement was signed in Beijing and supports China's carbon peak and carbon neutrality objectives for 2030 and 2060.

Air Liquide has maintained a successful partnership with Yanchang Petroleum Group since 2008, continuously supplying industrial gases to its Kaiyue subsidiary.

Ronnie Chalmers, Air Liquide Group Vice President supervising Asia Pacific, stated: "We are thankful for the continued trust from Yanchang Petroleum Group, a valued partner for almost two decades. This investment underscores Air Liquide's commitment to grow and reduce the carbon emissions of its operations while contributing to its customers' decarbonization journey with tailored solutions. The shift towards reducing carbon emissions is an ongoing movement in China, and our company is proud to be actively supporting it while managing to grow."

This project follows similar electrification initiatives by Air Liquide at two facilities in Tianjin, reflecting the Group's broader strategy to combine operational growth with substantial emissions reductions across its Chinese asset base. The Yulin modernisation further strengthens the company's contribution to sustainable industrial development in the region.