If you are interested in Air Liquide's share price, this new trading session was marked by the strengthening of the existing partnership between this group and the BASF group, which was announced very early this morning. Discover now the details of this news as well as some tips to take advantage of it and take a stand on this value.Trade in BASF shares!
On the morning of February 10, 2020, the Air Liquide Group and the BASF Group, already long-standing partners, issued a press release announcing the signing of three new long-term contracts in the Antwerp basin region of Belgium. This signing of new agreements is part of an approach that aims to achieve a low carbon footprint, in line with the Air Liquide Group's climate objectives, as clearly stated in today's announcement.
Thanks to the support of its five production plants located on site in the Antwerp basin, the French group has indeed set up a brand new agreement, this time for a period of 15 years, which corresponds, on the one hand to to the renewal of its air gas supply contract for existing units and, on the other hand, to the supply of additional oxygen for a new ethylene oxide plant which BASF is about to build.
With regard to the other characteristics of this strengthened partnership between these two companies, it should also be noted that the Air Liquide Group will also build and operate a unit or NRU in order to provide BASF with high-purity gases that will enable BASF to improve the efficiency of its MDI production. MDI is a very important chemical component that is used in thermal insulation to save energy in buildings and other applications as well. Under this agreement, the new NRU is expected to be operational by mid-2021.
Finally, it should also be noted that the Air Liquide Group will purchase part of the methane from BASF's production process and will use it as a raw material in its hydrogen production plants on the same site. This operation should enable the group to reduce its CO2 emissions by up to 15,000 tonnes per year at this site, which is located in the heart of the city.Antwerp and will also contribute to the development of a circular economy, as Air Liquide also indicated in this morning's press release.
This is therefore good news for the group, which should reap long-term benefits from this operation, which is likely to enable its share on the stock market to gain further points in the months and years to come.