Abdul Rahman Al-Suwaidi and Christian Last signing the long-term oxygene supply agreement.

DOHA: GASAL, a joint venture between Qatar Petroleum (QP), Air Liquide of France and Qatar Industrial Manufacturing Company (QIMC), is to invest $70m in a new, large oxygen and nitrogen production unit with a capacity of 750 tonnes of oxygen per day.

With Oryx GTL, the world’s largest operating gas-to-liquids (GTL) plant in Ras Laffan increasing its GTL production capacity and will require additional quantities of oxygen, it has inked a long term oxygen supply agreement with GASAL Q.SC to meet the requirement.

GASAL’s new unit will be designed and built by Air Liquide Engineering and will be commissioned at the end of 2010. In addition to the oxygen produced for Oryx GTL, it will also be the base for gaseous nitrogen supply to GASAL Q.S.C.’s nitrogen pipeline network currently under construction in Ras Laffan.

This new unit will be a strong foothold for GASAL Q.S.C. in Ras Laffan Industrial City in addition to this year’s successful start-up of its nitrogen unit for Ras Laffan Olefin Company. The unit will also serve as a reliable source of liquid gases for other customers in Qatar and in the neighboring countries.

Abdul Rahman Al-Suwaidi, the Chief Executive Officer of Oryx GTL, said: “The signing of the oxygen supply agreement supports the continuous growth of Oryx GTL. GASAL, through their shareholder’s international experience and expertise, is ideally suited to fill our growing oxygen demand. This agreement not only reflects the start of a commercial relationship with GASAL, but also demonstrates Oryx GTL’s support to the broader Ras Laffan initiative. As a Qatari company, Oryx GTL is pleased to be able to support other Qatari ventures and believe this will be a mutually beneficial relationship.”

Christian Last, the Chief Executive Officer of GASAL Q.S.C., said: “We would like to thank Oryx GTL for its trust and support in jointly achieving this milestone of our development in the Ras Laffan Industrial City. With this new long term supply agreement, GASAL Q.S.C. establishes a strong foothold in Qatar’s largest industrial basin and further completes its strategy of a safe and reliable supply of gases in large quantities to the industry. In addition, it means a lot to us that a leading company such as Oryx GTL has taken the decision to outsource its industrial gas requirements to GASAL QSC.”