The supply agreement is part of its expansion plan which will enable MPCC to produce cleaner fuels meeting higher environmental standards.

Upon completion of the project, MPCC will become one of the biggest refineries in China with a capacity exceeding 20 million tonnes oil refining per year.

The supply will be based on the investment in a new air separation unit (ASU) with a capacity of 3,000 tonnes of oxygen per day.

Furthermore, the new ASU, will also produce liquid oxygen, nitrogen and argon to meet the growing demand in South China.

The new ASU is expected to be commissioned in the first half of 2013.

Air Liquide and Sinopec have also entered into a 50/50 joint venture (JV) for the gas supply to MPCC, pursuant to which the JV will also oversee MPCC’s existing ASUs.

The companies have invested EUR85m in the JV.