OREANDA-NEWS. Praxair, Inc. (NYSE: PX) has entered into a definitive agreement to form a joint venture with JSC KuibyshevAzot, in central Russia's Samara region, to produce and sell industrial gases. The joint venture will produce on-site oxygen, nitrogen and compressed dry air for KuibyshevAzot's expanding caprolactam, fertilization and ammonia production, as well as liquid oxygen, nitrogen and argon for sale to customers in the Volga region.

Praxair and KuibyshevAzot will construct a new, energy-efficient air separation unit that will produce 1,400 tons per day of oxygen, nitrogen and argon and is scheduled to start-up mid-2016. The joint venture will also own and operate KuibyshevAzot's existing air separation unit, which produces 2,000 tons per day of oxygen, nitrogen. The merchant liquid supply will support the surrounding industrial region, including energy, automotive and other manufacturing customers. This is Praxair's fifth on-site project in Russia and third in the Volga region.

“Praxair is excited to work with such an experienced and responsible company to supply industrial gases to a key market in central Russia,” said Todd Skare, president of Praxair Europe. “Our modernization and investment program with KuibyshevAzot will bring significant energy efficiency and cost savings to the company, while increasing the supply of liquefied industrial gases to the growing demand from smaller regional customers.”

“Cooperation with Praxair, one of the worldwide industrial gas production leaders, will enable further modernization, production efficiency growth and the long-term competitiveness of our enterprise,” said Victor Gerasimenko, general director of KuibyshevAzot. “Construction of the new ASU is coupled with other major projects of our investment program and is necessary for supplying nitrogen to growing production needs.”