Praxair Wins Hydrogen Contract - Analyst Blog
June 22 2011 - 12:00PM
Zacks
Praxair Inc. (PX) entered into a long-term
agreement with Motiva Enterprises LLC to supply hydrogen to the
latter’s refinery in Norco, St. Charles Parish, Louisiana.
Recently, the industrial gas supplier has announced its decision
to enhance its hydrogen capacity in Louisiana and expand its
Mississippi River corridor hydrogen pipeline system. The company
will connect the Louisiana hydrogen pipeline complex with its new
plant being constructed in St. Charles Parish.
It is anticipated that by the second quarter of 2012 the
construction work of the pipeline would be complete, while that of
the plant would be accomplished by the fourth quarter of 2012.
It is evident from the present scenario that the growth
prospects of industrial gas producers are very bright going
forward, with demand for gases expected to increase manifold due to
their wide application areas. Hydrogen for refining; oxygen for
healthcare; and nitrogen and carbon dioxide for oil and gas
production are being increasingly used.
The demand environment for hydrogen particularly, is very strong
as it is increasingly used for refining purposes. Over the period
2010-2015, refining capacity is expected to grow by 2% in
US/Europe, 15% in India, 20% in China, 24% in the Middle East, and
25% in Brazil. The company has an expectation of a 20% volume
growth for hydrogen per annum going forward.
Praxair, one of the leading companies engaged in the production
and distribution of industrial gases, primarily caters to demands
in North America, South America, Europe, and Asia. Prime
competitors of the company include Air Products &
Chemicals Inc. (APD) and L'Air Liquide SA.
We currently maintain a Neutral recommendation on the stock.
AIR PRODS & CHE (APD): Free Stock Analysis Report
PRAXAIR INC (PX): Free Stock Analysis Report
Zacks Investment Research
Air Products and Chemicals (NYSE:APD)
Historical Stock Chart
From May 2024 to Jun 2024
Air Products and Chemicals (NYSE:APD)
Historical Stock Chart
From Jun 2023 to Jun 2024