Tuesday, February 9, 2010

Exxon Mobil (NYSE: XOM) Contracts with Praxair (NYSE: PX)

Praxair (NYSE: PX) has landed a deal with Exxon Mobil (NYSE: XOM) to construct and operate an air separation unit for the giant oil company for its gas processing plant in Hawkins, Texas.

The air separation unit will also be owned outright by Praxair will be used to increase the supply of nitrogen for enhanced oil recovery.

Consequently, the installation of the new production facility is scheduled to be operational sometime in the second half of 2011. About 85 million cubic feet of high-pressure nitrogen will be produced by Praxair for Exxon Mobil on a daily basis.

Praxair already supplies nitrogen gas to Exxon Mobil, but this will increase the amount of nitrogen used in order to improve the recovery of it natural gas and oil reserves.

Praxair Exxon Mobil Air Separation Unit

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