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ISSN 1755-3857 www.gasworld.com September 2013 Issue 100

gasworld magazine

Welding gases Ever-increasing demands?

Trends in supply chain management

Inside this issue: Indiana Oxygen • Manifold Systems • A-Gas Ltd

CONTENTS

Intelligence

Regional News

INTELLIGENCE

INTELLIGENCE

intelligence Myanmar: end of sanctions signal full speed ahead From gasworld Business Intelligence

The US Energy Information Administration’s (EIA) recent International Energy Outlook 2013 report projects world energy consumption to grow by 56% from 2010-2040, from 524 quadrillion British thermal units (Btu) to 820 quadrillion Btu.

80%

Most of this growth will come from non-OECD countries, where demand is driven by strong economic growth. Fossil fuels continue to supply nearly 80% of world energy use through to 2040.

Market share by end-use sector Manufacturing Food and beverage

16% 60%

healthcare-related gases, hence expect higher volumes of carbon dioxide and medical oxygen. By end-use sector, the manufacturing and food and beverage sectors account for the greatest proportion of industrial gas revenues: 60% and 16% respectively of a $17m total market (2012 data).

The medical and refining/ chemical sectors are not large end-users of gases yet but will likely become so in the future.

A new Myanmar report is available now from gasworld. www.gasworld.com/intelligence

Africa: more than the sum of its parts From gasworld Business Intelligence A vast continent of many contrasts, there is nonetheless a shared sense of destiny across many parts of Africa these days.

From the market dynamism arising out of the Arab Spring in the North to the emerging economies of Southern Africa, with the vast hydrocarbon wealth of West Africa and the economic dynamism of East Africa in between, there is a new resolve to shake off the vicissitudes and all too frequent iniquities of the past.

Outside of South Africa, Egypt and parts of the Maghreb, the industrial gas sector is still relatively undeveloped: there is very little tonnage business for example, and even relatively

28 | September 2013

Bulk market growth ahead in the ‘Stans’

Crude steel production increases

8

large end-users remain reliant on deliveries of cylinder gas.

But, there is a new generation of political leadership intent on simplifying market structures, encouraging enterprise and cracking down on corruption.

This is encouraging new forms of doing business and driving innovative solutions geared specifically towards the African marketplace. This willingness is also reflected in new ways of doing business in the gas sector: it is, for instance, becoming more commonplace for many end-users of large volumes of oxygen – such as hospitals – to forgo bulk liquid-based solutions and opt to operate non-cryogenic V/PSA plants,

especially in West Africa.

The manufacturing and metallurgical sectors currently account for over half of total industrial gas revenues in the region: 23% and 29% respectively of a total market value of $1.5bn (2012 data). The food and beverage market is also of significant size due to the large carbon dioxide markets of East and Southern Africa.

The medical and petrochemical sectors are growing rapidly, but do so from a relatively low base: these are markets to watch in the future.

Brand new Africa reports are available now, contact: marcus.jakt@gasworld.com

Despite a recent history of decay and deprivation under the Soviet Union, the Commonwealth of Independent States (CIS) is now emerging as a region of growth with bright development prospects.

Problems with corruption, creaking infrastructure and political instability still persist in parts, but the industrial gases business is going through a period of considerable expansion and a positive outlook lays ahead.

Blessed with abundant natural resources and helped by the

Gain in Asia spot LNG prices

6.8% Monthly average prices of LNG for August delivery to Asia rose by 6.8% from July, reaching $15.46 per million British thermal units (/MMBtu) as increased summer demand in North Asia was met with limited spot availability. That’s according to the latest monthly Platts Japan/Korea Marker (JKM) data for month-ahead delivery.

This is the first month-on-month gain in the monthly average JKM after it peaked at $19.139/MMBtu for March deliveries. The average August JKM was also 2.9% higher from a year earlier, breaking the year-on-year drop in monthly average recorded from May to July.

increasing privatisation of the previously stagnant state sector, high GDP figures are expected until at least 2016, with a calculated average of 5.8% growth per annum. The industrial gases market is estimated to be worth $189213m by 2020.

Uzbekistan is the secondlargest market in the region after Kazakhstan and is anticipating exciting growth rates over the next 5-8 years.

Tajikistan and Turkmenistan are both facing similar situations, foreseeing good growth prospects and

increased national demand, but each hindered by small starting bases which will impede their ability to post sizeable growth figures.

Captive production still dominates the region at around 84% of its make-up.

Supply scheme production and the merchant market still remain very small – expect to see rapid growth in onsite and merchant bulk over the next 5-8 years.

A brand new collection of Central Asia reports are available now, simply contact: marcus.jakt@gasworld.com

Semi spending set to increase From SEMI The continued rise of the smart phone and tablet computers is taking chip demand to all new levels it seems, with SEMI projecting vigorous growth in the semiconductor business next year.

The mid-year edition of the SEMI Capital Equipment Forecast shows an improving outlook for the chip equipment industry. Following two years of conservative capital investments by major chip manufacturers, SEMI forecasts equipment sales will reach $43.98bn in 2014, a strong 21% increase over an estimated 2013 equipment spend of $36.29bn.

Most major regions of the world will see significant equipment spending increases,

the report claims. The highest growth is forecasted in China (82%), Europe (79%), South Korea (31%), and Japan (21%). In North America this moderates slightly to just under double-digit levels at 9%.

Taiwan will continue to be the largest spender with $10.62bn estimated for 2014, and North America next at $8.75bn.

Projected semiconductor equipment sales

2013

2014

1.9% World crude steel production for the 64 countries reporting to the World Steel Association was 132 million tonnes (Mt) in June 2013, an increase of 1.9% compared to June 2012.

World crude steel production in the first six months of 2013 was 789.8 Mt, an increase of 2% compared to the same period of 2012. Asia showed an increase of 5.5% while other regions recorded negative growth in first half 2013.

4.6% China’s crude steel production for June 2013 was 64.7 Mt, up by 4.6% compared to June 2012. Elsewhere in Asia, Japan produced 9.3Mt of crude steel in June 2013, an increase of 0.9% compared to the same month last year. South Korea’s crude steel production was 5.5 Mt in June 2013, down by 5.4% on June 2012. In the EU, Germany produced 3.7 Mt of crude steel in June 2013, a decrease of 2.2% over June 2012, though France produced 1.4 Mt of in June 2013, up 2.8% on June 2012. US output of 7.2 Mt of crude steel in June was down 0.2% on June 2012.

12

Myanmar: end of sanctions signal full speed ahead Page 28

16

Asia-Pacific Iwatani brings second Union plant online

20

Middle East Qatar helium II plant begins operations

22

Technology Servomex launches ‘game changing’ gas detector

24

Interview

Americas Linde breaks ground on new ASU in Texas

September 2013 | 29

www.gasworld.com/specialfeatures

Europe Air Liquide in Antwerp basin development

From gasworld Business Intelligence advanced welding gases.

Growing affluence should boost demand for more consumer goods and

$ 43.98bn

EIA reveals energy consumption rise

56%

has already posted impressive growth since the early 2000s – despite the sanctions. In part, this has been related to continuing Chinese investment combined with a growing global thirst for hydrocarbon resources that shows no signs of abating yet.

What does this mean for the industrial gas business?

In general, already buoyant economic growth is likely to accelerate, meaning more construction and light manufacturing activity – leading to higher volumes of acetylene, oxygen and

$ 36.29bn

In 2012, following a period of political reform in Myanmar, both the US and the EU opted to end decades-old economic sanctions aimed at the country since the 1980s. Combined with the country’s enormous wealth of natural resources (not just oil and gas, but also iron and other metal ore deposits), the opening-up of the marketplace to Western capital is generating a great deal of interest.

Despite a relatively unreformed marketplace and a still sometimes unfriendly business climate, the economy

Hydrogen UK hydrogen ferry first celebrated

26

LNG Scandinavia LNG transport pipeline ahead

Feature Articles 30

Hot topic CO2 – Supply and Demand

Four generations, only one Indiana Oxygen An interview with Gary Halter, Vice-President of Sales and Marketing Page 48 magazines – website – conferences

ISSN 1755-3857 www.gasworld.com September 2013 Issue 100

gasworld

On the cover this issue

32

Keith Stewart column

34

Ever-increasing demands?

Trends in supply chain management

Inside this issue: Indiana Oxygen • Manifold Systems • A-Gas Ltd

© Messer | The welding business and the gases industry are inextricably linked.

Economic growth in one is usually an indicator for growth in the other. But what does the future hold for these two businesses? Find out more about the state of play in the welding sector this month.

100th special Celebrating 100 issues of gasworld magazine

46

10 mins with...

Dr Simon Bourne

magazine

Welding gases

Setting standards in the LNG industry

52

Welding gases Past, present and future

58

Ever-increasing demands Shielding gases for welding

62

Regional markets Focus on welding gases and hardgoods

66

Gases & goods Trends in supply chain management

NEXT ISSUE...

Medical gases – Gas Production/Distribution – Medical Gas Purity and Legislation – Global Medical Gas Markets

70

Equipment profile Manifold systems

72

Company profile A-Gas Ltd

74

Community corner Events, tweets and polls September 2013 | 05

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WELCOME

Team MAGAZINE Managing Editor Rob Cockerill rob.cockerill@gasworld.com Production Manager Jon Evans jon.evans@gasworld.com Design Assistant Mark Mitchell mark.mitchell@gasworld.com Web Editor Stuart Radnedge stuart.radnedge@gasworld.com Feature Writers Simon Augustus Helen Carmichael Sam A. Rushing Roy Irani

Marketing and Events Marketing and Events Manager Becky Palmer becky.palmer@gasworld.com

ADVERTISING Media Sales Manager Ron Leitch ron.leitch@gasworld.com Advertising Manager Kevin Murphy kevin.murphy@gasworld.com Directory Sales Executive David Ayling david.ayling@gasworld.com

BUSINESS INTELLIGENCE Business Analyst Marcus Jakt marcus.jakt@gasworld.com

SUBSCRIPTIONS Subscription sales John Thomson john.thomson@gasworld.com 2013 subscription rates All content, print and online $330 / €260 / £200 How to subscribe Subscriptions can be made through the following options: www.gasworld.com/subscribe +44 1872 225 031 subscriptions@gasworld.com

Time to celebrate...

ROB COCKERILL

…97, 98, 99, 100! Welcome to the 100th issue of gasworld Managing Editor magazine, a milestone we’ve been looking ahead to for some time now, and something we’re delighted to celebrate with you this month.

When gasworld magazine began in 2005, it came in response to demand for a hard copy product that captured all the latest developments in the industrial gases business, packaged in a convenient handheld companion that could easily slip inside your briefcase. Who would have thought that the magazine would go on to mature into its 100th issue, a far cry from the original 24-page publication and yet still true to its roots?

Perhaps the answer to that question is our very own Publisher, John Raquet. As part of our celebrations this issue, we bring you an interview with John and I, as we talk about the development of the magazine and some of our favourite stories along the way. John reveals more about us making the news following the acquisition of CryoGas International by our US subsidiary.

“...as you’ll find over the next 70-plus pages, we’ve given the magazine a freshen-up”

Perhaps another answer to that question would be you, our valued readers and promotional partners. Your loyal readership and support is not lost on gasworld, and we wholeheartedly thank you all for your continued affiliation throughout the years. We hope you agree that gasworld magazine has matched your expectations during this time and as part of our celebrations this month, we look back on 10 memorable editions along the way, from the landmark that was Issue 1 to the first-ever Green Issue, and progressive editions in-between.

We also continue to invest in the magazine and as you’ll find over the next 70-plus pages, we’ve given the magazine a freshen-up to take forward.

Finally, in further celebration of 100 issues, we bring you a combined total of more than 100 pages of content with the addition of our supplement this September. Exploring Advances in Air Separation, it’s the perfect companion to your monthly gasworld offering.

Rob Cockerill, Managing Editor (rob.cockerill@gasworld.com)

ADDRESS gasworld.com Ltd. Unit 2 Bldg B, Greencourt, Truro Business Park,Truro Cornwall TR4 9LF, United Kingdom Tel: +44 1872 225 031 Fax: +44 1872 260 668

gasworld intelligence

Market intelligence and business information are essential tools for any business Printed by wyndeham roche www.wyndeham.co.uk

NEW! Now available 25 Country Reports

Read more

September 2013 | 07

EUROPE

Air Liquide in Antwerp basin development BELGIUM

Air Liquide has made an additional investment of €50m in the Antwerp basin in Belgium – supplying BASF with carbon monoxide.

The chemicals industry has maintained its position in Western Europe’s major

industrial basins, buoyed by dynamic players with significant industrial gas needs. The Antwerp basin in Belgium is the largest chemical and petrochemical basin in Europe.

Air Liquide has recently signed a long-term contract with BASF to supply carbon

© BASF | Air Liquide will supply carbon monoxide.

Sapphire Energy and Linde expand partnership GERMANY

Sapphire Energy, Inc., one of the world leaders in algae-based Green Crude oil production, and The Linde Group have announced they will expand their partnership to commercialise a new industrial scale conversion technology needed to upgrade algae biomass into crude oil.

Together, the two groups will refine the hydrothermal treatment process developed and operated today by Sapphire Energy at pilot scale. In addition, they will jointly license and market the technology into an expanded 08 | September 2013

list of industries, including algae, municipal solid waste and farm waste in order to upgrade other biomass sources into energy. The agreement spans a minimum of five years through the development of Sapphire Energy’s first commercial scale, algae-to-energy production facility.

“Sapphire Energy is very pleased to build upon its already successful strategic partnership with Linde to build a commercial oil upgrading process designed to increase yield and lower the cost of crude oil production,” said Cynthia ‘CJ’ Warner, CEO

monoxide to its MDI production unit located in Antwerp, and will invest in a new carbon monoxide production unit located next to its existing facilities. The unit, which is scheduled to be up and running in the first quarter of 2015, will double Air Liquide’s carbon monoxide production capacity in this basin.

It is understood that the overall investment will amount to around €50m.

The unit will be designed and built by Air Liquide Engineering and Construction teams, using state-of-the-art technologies that offer energy efficiency as well as optimal performance and safety.

Guy Salzgeber, VicePresident, Western Europe and a member of the Air Liquide Executive Committee, commented, “Understanding the needs and constraints of our customers allows us to provide them with cutting-edge technology solutions. Through its investments, Air Liquide supports the development and competitiveness of European manufacturers.”

and Chairman of Sapphire Energy. “Large energy projects like we are building require very significant partnerships to fund the development of new technologies and make available engineering resources required to bring these projects online at commercial scale.”

This growing partnership

builds upon the companies’ agreement to develop a low cost CO2 management system for open pond algae-tofuel production, previously announced in 2011. Linde also became the exclusive supplier of CO2 for Sapphire Energy’s commercial demonstration, algae-to-energy facility in Columbus, New Mexico.

“Through its investments, Air Liquide supports the development and competitiveness of European manufacturers”

© Saphire Energy | Algae can be converted to crude oil.

www.gasworld.com/europe

EUROPE

Activity underlines significance of emerging Russia market for Praxair RUSSIA

Praxair has entered into a definitive agreement to form a joint venture (JV) with OJSC KuibyshevAzot, in central Russia’s Samara region, to both produce and sell industrial gases.

The joint venture will produce onsite oxygen, nitrogen and compressed dry air for KuibyshevAzot’s expanding caprolactam, fertiliser 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 (ASU) that will produce 1,400 tonnes per day (tpd) of oxygen, nitrogen and argon and is scheduled

to start-up in mid-2016. The joint venture will also own and operate KuibyshevAzot’s existing ASU, which produces 2,000 tpd of oxygen, nitrogen and argon. The merchant liquid supply will support the surrounding industrial region.

The agreement becomes Praxair’s fifth onsite project in Russia and its third in the Volga region. It is not the only activity the company has been pursuing in the country recently, with Praxair, Inc. also acquiring Volgograd Oxygen Factory (VOF), a leading producer and distributor of industrial gases in southern Russia, significantly strengthening the company’s merchant liquid and packaged gas business in the region.

Todd Skare, President of Praxair Europe, enthused,

President Engineering Kryooprema expands now a BSSA member equipment portfolio UNITED KINGDOM

Serbia

President Engineering Group (PEGL) has joined the British Stainless Steel Association (BSSA) as part of its commitment to driving forward with new innovations and technologies.

As members of the BSSA, Bestobell Valves, a company of PEGL, will be able to utilise technical expertise in relation to the behaviour of stainless steel in cryogenic conditions.

This will further enhance its work in the development of valve technology.

Serbian cryogenic equipment manufacturer Kryooprema has recently introduced Microbulk Stationary Pallet Tanks to its production programmes in accordance with PED. Capacities of the newly added tanks range from 600 litres right up to 2,000 litres, while MWPs are available in 24-bar and 37-bar options.

Kryooprema has also recently added a new range of compact cryogenic ‘stations’ to its product portfolio.

Trio cooperate in syngas initiative

BASF, The Linde Group and ThyssenKrupp plan to develop an environmentally friendly and “The competitive basis for utilising acquisition carbon dioxide (CO2) on an of VOF is industrial scale. consistent The trio aims to employ A new ASU will startwith our innovative process up in mid-2016 business technology to use carbon strategy to dioxide as a raw material, with continue to build positive effects on climate production and distribution protection. Together with density in southern Russia.”

BASF’s subsidiary the AG and “We expect to derive scientific partners VDEhimmediate synergies with Betriebsforschungsinstitut, Praxair’s newly built plant Düsseldorf, and TU Dortmund in Volgograd, as well as University, the companies are the integration of VOF developing a two-stage process. into our existing regional In the first step, an innovative infrastructure.” high-temperature technology will process natural gas to “The acquisition is obtain hydrogen and carbon. consistent with our Compared to other processes, this technology produces very strategy to continue to little CO2. The hydrogen is then build production and reacted with large volumes of distribution density in CO2, from other processes, to give syngas. A mixture of carbon southern Russia” monoxide and hydrogen, syngas is a key raw material for the AMCS to provide plant chemical industry and is also suitable for producing fuels. in Bulgaria for SOL The German Federal Ministry of Education and Research BULGARIA (BMBF) is subsidising the AMCS Corporation is to project within its ‘Technologies continue its relationship with for Sustainability and Climate SOL S.p.A after agreeing Protection – Chemical Processes to supply an ULTRA-ALTM and Use of CO2’ scheme. The merchant ASU for use in project began on 1st July and is Bulgaria. The agreement expected to last three years. builds on previous “Methane decomposition cooperation between the complements our existing two companies; AMCS has technology portfolio as well as provided two plants for SOL our hydrogen, CO2 and syngas in Italy in recent years. businesses...this new technology This dynamic will now be stands out for its higher deployed again in Bulgaria, as efficiency and for reducing CO2 AMCS gets to grip with what emissions by half.,” said Dr it describes as the ‘unique’ Harald Ranke, Head of Clean challenges in this geography.

Energy Technology at Linde.

2016

September 2013 | 09

EUROPE

Development in next generation electronics Linde Electronics has launched a revolutionary new carbon nanotube ink to drive innovation in the development of next generation displays, sensors and electronic devices.

Linde’s carbon nanotube inks can be used to manufacture completely new technologies, such as a smartphone with a screen that rolls up like a window shade and a see-through GPS device embedded in the windshield of a car.

Carbon nanotubes with only 10,000th the diameter of a human hair are an allotrope of carbon like graphite and diamond, and have unique physical and electronic properties including a higher thermal conductivity than diamond, greater mechanical strength than steel (orders of magnitude by weight), and larger electrical conductivity than copper. These properties will enable electronic device manufacturers to develop more innovative electronic devices.

This landmark development drastically improves the performance of transparent conductive thin films made from the inks and opens the door for the development of nanotube applications in not only consumer electronics, but also the healthcare sector and sensor manufacturing. Linde appears to see it as the first ‘commercially viable nanotube solution in the market’.

“These properties will enable electronic device manufacturers to develop more innovative devices” 10 | September 2013

Messer shows commitment to the South Westphalia region GERMANY

On 1st July 2013, Messer Industriegase, a subsidiary of owner-managed company Messer Group, based near Frankfurt, acquired the former Messer Griesheim factory premises in SiegenKaan Marienborn.

The purchase demonstrates the industrial gas specialist’s commitment to the South Westphalia region. The site had been under the ownership of Salzgitter Mannesmann Line Pipe GmbH since 2003.

The South Westphalia region, as a location, is home to a large number of successful and traditional family enterprises. “At the same time, this step is one that Messer has to take in

order to ensure planning security for further expansion of the site,” said Peter Schulte, Sales Manager at Messer Industriegase.

With brief interruptions, Messer has now had a presence in Siegen for over 100 years. The expansion of the former industrial gases filling plant in Siegen-

Weidenau reached its limits at the end of the 1980s. That is why, in 1991, a new and modern filling plant for industrial gases like oxygen and nitrogen was built on an area of over 20,000 square metres in the then newly emerging In der Steinwiese industrial area in Siegen-Kaan Marienborn.

© Messer | The site will serve a wide array of industries.

Cryogenic energy centre planned in UK

New hires revealed at IceTech A/S

Home healthcare purchases in Poland

UNITED KINGDOM

DENMARK

POLAND

The University of Birmingham has won a £6m grant from the Engineering and Physical Sciences Research Council to create a new Centre for Cryogenic Energy Storage.

The ‘liquid air’ technology could revolutionise the storage of energy, it is claimed. The new centre will be the UK’s first dedicated research facility for energy storage using cryogenic liquids, comprising new laboratories, state-of-theart equipment, and a major demonstration plant.

Two new appointments have been made at IceTech A/S, with Henning Lyager named as Area Sales Manager and Maria Bech Lauritsen named as the new Marketing and Sales Supporter.

Lyager will be responsible for all sales related activities in the Asia region, while Bech Lauritsen will be responsible for all text related marketing activities, seminars and fairs for the corporation, as well as supporting the company’s sales organisation all around the world.

Air Liquide has struck deals to acquire two Poland-based home healthcare companies – HELP! and Ventamed.

Poland is one of the largest countries in the EU, with steady economic growth and development opportunities in the industrial and healthcare markets. The acquisitions of HELP! and Ventamed will enable Air Liquide to provide its homecare services nationwide to patients with chronic respiratory diseases or conditions requiring mechanical ventilation. www.gasworld.com/europe

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AMERICAS

Linde breaks ground on new ASU in Texas UNITED STATES

Linde North America has broken ground on its large, state-of-the art air separation unit (ASU) plant in La Porte, Texas. The ASU is part of a $200m investment that will also include a gasification train and supporting equipment and facilities.

The plant will come onstream in the first quarter of 2015 and will be the largest such Linde facility in the US. Pat Murphy, President of Linde North America, hosted groundbreaking ceremonies attended by customers, members of the news media and representatives of local, state and federal governments.

In attendance were La Porte Mayor Louis Rigby, as well as

district representatives from the offices of US Senator Ted Cruz, US Representative Steve Stockman, who represents the 36th district of Texas, which includes La Porte, and State Senator Larry Taylor. Also in attendance were representatives from the Greater Houston Partnership.

Guests attending the groundbreaking ceremony were given tours of the gasification and methanol plants at the La Porte site and received information on the products made at the plant — carbon monoxide, hydrogen and methanol for use by chemical manufacturers and oil refiners.

The air gases (oxygen and nitrogen) produced by the new ASU will supply the

OxySure launches new product to meet demand UNITED STATES

OxySure Systems, Inc. a medical device innovator of life-saving, easy-to-use emergency oxygen solutions with its ‘oxygen from powder’ technology, has launched a new double wall-mounted cabinet to house a combination AED/ OxySure system.

The new product allows customers to house and display an AED of their choosing, along with an OxySure Model 615 unit in the same wall cabinet, allowing easy, onestep access, reducing response 12 | September 2013

time when seconds count, in a cardiac arrest or other medical emergency. In addition, by housing both their AED and OxySure units in the same cabinet, the company believes that customers will save wall space and expense, and will reduce installation and maintenance requirements.

The product is the result of market demand for such a solution, as Julian T. Ross, CEO of OxySure Systems, Inc. stated, “We are pleased to be offering our customers and distributors this new combination wall cabinet. We have developed

gasification assets at the La Porte site. The new gasifier will convert natural gas into syngas and constituent products such as carbon monoxide, hydrogen and carbon dioxide which are used to produce methanol, downstream chemicals and cleaner transportation fuels.

The syngas products will be served, by pipeline, to a key customer in the area.

Linde also owns and operates three additional

“This latest venture is the largest single site investment in plant and equipment Linde has made to date in the US...”

large, partial oxidation facilities that manufacture syngas products using Linde’s world-leading syngas processing technologies and know-how.

“Linde is the leading syngas supplier in this region,” said Murphy. “This latest venture is the largest single site investment in plant and equipment Linde has made to date in the US.” Murphy added, “Coupled with our unique portfolio of industrial gas and hydrocarbons technology, engineering and operations capabilities, the new plants will allow Linde to better serve the petrochemicals industry that is being driven to new heights by the shale gas revolution.”

this product based on customer feedback, and we believe it enhances the appeal of the AED and OxySure Model 615 as a combination set, and our product portfolio in general.”

The cabinet comprises a powder coated finish and clear impact resistant

acrylic window that provides durability and protection, and also comes fully alarmed with a key switch conveniently located in the front. In a cardiac arrest emergency it is intended to be used post-resuscitation. In most other cases it is intended for general emergency use.

Market demand for a combined oxygen solution resulted in the new product from OxySure Systems.

www.gasworld.com/americas

AMERICAS Interview

Hot topic

Four generations, only one Indiana Oxygen An interview with Gary Halter Page 48

CO2 – Supply and Demand

By Stuart Radnedge Page 30

Nameinchange News brief after

Praxair expands hydrogen supply for customers of Gulf Coast pipeline

Witteman acquisition

Russia Following asu UnionstaRt-up Engineering’s acquisition of the plans foR aiRWittemann liquide Company, LLC in April,

Air Liquide isofpursuing the integration the twoits long-term development in companies has seen the latter russia and starting-up a new air change its name to Union separation unit (ASu) that will Engineering North produce oxygen andAmerica. nitrogen in new economic identity is just theThe Special Zonepart of of the integration process; Alabuga in Tatarstan. one the of the theTatarstan goal is toisalign two most economically developed companies’ product lines republics in the russian and services and position Federation. its economy is the Union Engineering as the fifth largest in russia, in terms of premier globalproduct. supplierOne of of gross regional plants and services.

With CO2main the drivers of this economy acquisitionmanufacturing of Wittemann, isthe a significant capacity; industrial production Union Engineering cemented its constitutes 40%true of the position asup thetoonly global region’s gross regional product.

CO2 plant supplier.

The new state-of-the-art ASu Geiger, former general willBill produce 200 tonnes per day manager thenitrogen Wittemann of oxygenof and to supply Company Managing the currentand andcurrent future needs of Director ofcustomers.

Union Engineering industrial it is fully standardised, North America,cost LLCefficient, explained comes in fully packaged the thinking behind this modules and offers many new branding development, benefits, including compact “Aligning the name with the design and layout and simple rest of the Union Engineering Air operations and maintenance. companies is providing a clear Liquide is planning to develop message to in ourAlabuga customers its business by that creating a pipeline network with and we are now ONE company developing the supply chain. a unified product line.”

UNITED STATES

Praxair, Inc. has announced the start-up of its state-of-theart, 135 million standard cubic feet per day (scfd) hydrogen plant serving the Valero refinery Port Arthur, Texas and other customers.

The new plant houses the largest Steam Methane Reformer (SMR) Praxair has built to date to supply hydrogen and up to 450,000 pounds per hour of steam to Valero’s new 57,000 barrelsper-day hydrocracker.

Hydrocrackers are used to break down hydrocarbon molecules in heavier crude oil to produce premium transportation fuels, such as gasoline, diesel, and jet fuels, that burn cleaner and are in strong demand globally. The process produces 1.2 barrels of high-value, low-sulphur products for each barrel of high-sulphur feedstock.

The new Port Arthur SMR is connected to Praxair’s existing 750 million scfd Gulf Coast

Hydrogen is in strong demand on the Gulf Coast.

pipeline network. The network includes a unique 2.5 billion scf high-purity hydrogen storage cavern that provides additional supply reliability for Praxair customers along the pipeline. The US Gulf Coast is the largest oil refining and petrochemical producing region in the world.

“This project represents a significant investment in hydrogen supply for Praxair’s customers along the Gulf Coast,” said Mike Jordan, Vice-President, US Hydrogen.

“And with the completion of

a similar plant with pipeline expansion in Louisiana this year, we will enhance competitive supply options for the lower Mississippi River corridor as well.”

Praxair operates more than 50 hydrogen production facilities and seven hydrogen pipeline systems globally.

Refinery customers worldwide benefit from Praxair’s complete portfolio of largevolume industrial gases, cylinder gases and specialised refinery technologies and services.

“...the JV solidifies our supply of critical components for a variety of LNG applications, beginning with vehicle fuelling”

“I would like to thank the many people who have contributed to bring this helium project in Qatar to where it is today”

Todd Skare President Praxair Europe

Tom Carey President Chart D&S

Francois Darchis Senior Vice-President Air Liquide Group

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Quotes of the month

“The acquisition of VOF is consistent with our strategy to continue to build production and distribution density in southern Russia”

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subscribe now to Cold Facts tHE magazinE For CryogEniCs Join the Cryogenic Society of America at www.cryogenicsociety.org

September 2013 | 13

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AMERICAS

LDA celebrates 20th anniversary

Air Products joins SEMATECH development programme

Formerly known as the Airco Distributor Association, the LDA, since its inception in 1993, has sustained ongoing UNITED STATES partnerships with key vendors the past two decades.

Air Products has joined Linde North America SEMATECH’s Front End provides marketing and Processes (FEP) programme, administrative support to the and will work with the association, which enables company to assess advanced its independent gases materials and technologies and equipment distributor for the development of sub-10 members to leverage their nm node III-V devices. purchasing power to achieve Continued scaling will volume discounts and earn require the use of new rebates from suppliers. materials and chemistries Mark Falconer, President of to keep pace with the Minneapolis Oxygen Company International Technology and co-chairman of LDA, Roadmap for Semiconductors said, “Minneapolis Oxygen (ITRS). For example, III-V has been a member of LDA channels offer significant since its inception. It’s been power and performance both a pleasant and profitable benefits, such as higher experience. It is the best and mobility, enhanced drive most successful buying group current and supply voltage in our industry because of our scaling which enable integrity and loyalty to our vendor partners.”

Since 1993, the LDA has grown to include 70 New high pressure member companies who filling facility in Texas have over 400 retail locations throughout the US. Together, UNITED STATES LDA members make over $1bn Gas Innovations, an in annual purchases and have independent wholesale earned some $27m in rebates provider of hydrocarbon in the group’s lifetime. gases, equipment and The products purchased services to industrial gas include wire and cable, producers and distributors, abrasives, tools, MIG and has completed work at its new TIG replacement parts, high pressure filling facility. plasma cutting The new plant increases equipment, capacity for tube trailer welding and cylinder filling of helmets, carbon monoxide, ethane, cylinders, The LDA has grown methane (CNG), and cryogenic to include 70 member ethylene.

Additionally, storage companies cryogenic methane (LNG) equipment and cryogenic ethylene and tank capacities are increased. maintenance services.

70

14 | September 2013

continued device scaling and performance improvement.

As a member of the programme, located at SUNY’s College of Nanoscale Science and Engineering (CNSE), Air Products will closely collaborate with SEMATECH’s engineers and leverage SEMATECH’s activities in advanced materials to enable better understanding of the underlying principles responsible for the deposition of III-V structures. The goal of the team will be to help guide the development of new chemical products that address a wide variety of needs for next generation semiconductor devices.

“Air Products will be

cooperating with SEMATECH to accelerate the introduction of innovative products to the marketplace,” said Dr. John Langan, the Global Director of Electronics Technology for Air Products.

“By leveraging the capabilities of SEMATECH, we are accelerating new product development to fulfill the requests we are receiving for electronics materials from our industry partners.”

New recertification operation for Airgas

50th anniversary for Minnesota facility

UNITED STATES

UNITED STATES

Airgas Refrigerants, Inc. plant in Smyrna is successfully operating an on-location cylinder recertification facility, following approval from the US Department of Transportation Pipeline and Hazardous Materials Safety Administration.

The approval allows Airgas to recertify low-pressure cylinders manufactured to 4B series DOT specifications including 4B, 4BA and 4BW, and further streamline its processes and operations, reducing cost and waste.

June saw MVE-Chart celebrate 50 years of operations at its New Prague, Minnesota, facility, a cornerstone of Chart’s Distribution & Storage Group (D&S).

In 1963 Minnesota Valley Engineering (MVE) began as a start-up company to build a better LN2 container for freezing cattle semen to serve the artificial insemination market. MVE joined forces with Chart in 1999 and since then the Chart D&S Group has stretched across the globe.

“Air Products will be cooperating with SEMATECH to accelerate the introduction of innovative products to the marketplace”

www.gasworld.com/americas

High purity technology Air Separation Unit for the production of liquid Oxygen, Nitrogen and Argon

SIAD Macchine Impianti S.p.A. Compressors, Air Separation Units, Automation, Welding and Services.

www.siadmi.com

• High purity oxygen, nitrogen and argon thanks to cryogenic technology.

• High process efficiency, proven and widely demonstrated by the number of plants in operation.

• Tailor-made fabrication to the end-user’s special requirements.

• Skid-mounted assembly for faster installation, commissioning and startup.

• Easy to use: fully automated system for easy and reliable “unattended” management.

• Automated process control system which ensures the operating cycle can be adapted to meet variations in product request.

• Remote monitoring service by SIAD Macchine Impianti to monitor the operating status.

The nature of power

ASIA-PACIFIC

Iwatani brings second Union plant online CHINA

Iwatani Corporation has increased its competitiveness in the market with a second CO2 recovery and purification plant from Union Engineering that has recently been put into operation.

Iwatani is a major player in the gases industry with a range of projects under development in Japan, as well as in the rest of South East Asia. The new plant is part of its effort to further strengthen its position as a leading supplier of highly pure CO2 in China. The CO2 containing by-products, streamed from ethylene oxide and ethylene glycol production, are often emitted to atmosphere;

by implementing a Union Engineering CO2 plant this waste gas can be purified to highly pure CO2 and turned into a profitable business.

Mr. Ooya Fumiaki, of Iwatani Corporation, commented, “In view of technology, Union can provide [a] sophisticated process, high quality product, material consumption and energy consumption are on the advanced level wherever in domestic and abroad…

Union plant will increase our competitiveness in [the] market.”

“We regard any product or technical development that can resolve, mitigate, or reduce environmental impact as ‘Eco-friendly

Products’. This business case fits perfectly into our strategy and Union Engineering was the natural choice as [a] partner to realise the project.”

The modern day ethylene oxide plant is a highly efficient process plant designed to minimise energy use and waste generation.

However, due to the

nature of the process, carbon dioxide is generated as a byproduct during the oxidation process. By integrating a CO2 purification and liquefaction unit, this can convert the waste gas stream into a highly pure CO2 to be used in food and beverage applications.

© Union Engineering | CO2 technology from Union Engineering can convert byproduct waste gas into profit.

Servomex supplies analyser shelter to Reliance plant INDIA

Servomex has successfully completed the first manufacture and supply of a bespoke gas analyser shelter for Reliance Industries’ Pure Terephthalic Acid (PTA) plant in Patalganga.

One of the world’s top petrochemical product manufacturers and the leading manufacture of polyester yarn and fibre, Reliance required a cutting-edge solution to ensure the highest product quality while maintaining impeccable process safety in line with the company’s industry-leading standards. Servomex delivered a turnkey solution for Reliance, which encompassed the 16 | September 2013

commissioning, planning and build of the analyser house, as well as the installation of the necessary equipment.

Servomex also supplied SERVOTOUGH OxyExact (2200) and SERVOTOUGH SpectraExact (2500) process analyser systems as part of a $3bn project to upgrade Reliance’s manufacturing sites at Patalganga and Dahej in Gujurat. Housed within Servomex’s customdesigned analyser shelter, the OxyExact uses Servomex’s high specification paramagnetic oxygen transducer for optimum process and safety control in general and high temperature applications, while the SpectraExact photometric

process analyser offers single or dual component gas analysis designed to measure corrosive, toxic and flammable sample streams.

“This is a great success for the Servomex team in India,” said Virlesh Desai, General Manager, Servomex India.

“Not only does it demonstrate the company’s ability to build and supply a total gas analysis solution, but also to greatly exceed the solutions being proposed by our competitors.”

Keyur Vora, Assistant Vice-

Reliance required a cutting edge solution to ensure the highest product quality...

President Instrumentation (Core Engineering & Projects), Reliance Industries, added, “Reliance chose Servomex on the basis of its proven track record in delivering successful and reliable gas monitoring solutions for process safety critical application of PTA plants and other DMD projects, as well as its ability to provide first class service and support at a local level.”

The Reliance group of companies is India’s largest private sector organisation with manufacturing plants at Patalganga, a petrochemicals complex at Hazira, in Gujarat, and the world’s largest refinery at Jamnagar, in Gujarat. www.gasworld.com/northpacific

INTELLIGENCE

intelligence Myanmar: end of sanctions signal full speed ahead From gasworld Business Intelligence In 2012, following a period of political reform in Myanmar, both the US and the EU opted to end decades-old economic sanctions aimed at the country since the 1980s. Combined with the country’s enormous wealth of natural resources (not just oil and gas, but also iron and other metal ore deposits), the opening-up of the marketplace to Western capital is generating a great deal of interest.

Despite a relatively unreformed marketplace and a still sometimes unfriendly business climate, the economy

EIA reveals energy consumption rise

56%

The US Energy Information Administration’s (EIA) recent International Energy Outlook 2013 report projects world energy consumption to grow by 56% from 2010-2040, from 524 quadrillion British thermal units (Btu) to 820 quadrillion Btu.

80%

Most of this growth will come from non-OECD countries, where demand is driven by strong economic growth. Fossil fuels continue to supply nearly 80% of world energy use through to 2040.

28 | September 2013

has already posted impressive growth since the early 2000s – despite the sanctions. In part, this has been related to continuing Chinese investment combined with a growing global thirst for hydrocarbon resources that shows no signs of abating yet.

What does this mean for the industrial gas business?

In general, already buoyant economic growth is likely to accelerate, meaning more construction and light manufacturing activity – leading to higher volumes of acetylene, oxygen and

advanced welding gases.

Growing affluence should boost demand for more consumer goods and Market share by end-use sector Manufacturing Food and beverage

16% 60%

healthcare-related gases, hence expect higher volumes of carbon dioxide and medical oxygen. By end-use sector, the manufacturing and food and beverage sectors account for the greatest proportion of industrial gas revenues: 60% and 16% respectively of a $17m total market (2012 data).

The medical and refining/ chemical sectors are not large end-users of gases yet but will likely become so in the future.

A new Myanmar report is available now from gasworld. www.gasworld.com/intelligence

Africa: more than the sum of its parts From gasworld Business Intelligence A vast continent of many contrasts, there is nonetheless a shared sense of destiny across many parts of Africa these days.

From the market dynamism arising out of the Arab Spring in the North to the emerging economies of Southern Africa, with the vast hydrocarbon wealth of West Africa and the economic dynamism of East Africa in between, there is a new resolve to shake off the vicissitudes and all too frequent iniquities of the past.

Outside of South Africa, Egypt and parts of the Maghreb, the industrial gas sector is still relatively undeveloped: there is very little tonnage business for example, and even relatively

large end-users remain reliant on deliveries of cylinder gas.

But, there is a new generation of political leadership intent on simplifying market structures, encouraging enterprise and cracking down on corruption.

This is encouraging new forms of doing business and driving innovative solutions geared specifically towards the African marketplace. This willingness is also reflected in new ways of doing business in the gas sector: it is, for instance, becoming more commonplace for many end-users of large volumes of oxygen – such as hospitals – to forgo bulk liquid-based solutions and opt to operate non-cryogenic V/PSA plants,

especially in West Africa.

The manufacturing and metallurgical sectors currently account for over half of total industrial gas revenues in the region: 23% and 29% respectively of a total market value of $1.5bn (2012 data). The food and beverage market is also of significant size due to the large carbon dioxide markets of East and Southern Africa.

The medical and petrochemical sectors are growing rapidly, but do so from a relatively low base: these are markets to watch in the future.

Brand new Africa reports are available now, contact: marcus.jakt@gasworld.com

www.gasworld.com/intelligence

INTELLIGENCE

Bulk market growth ahead in the ‘Stans’

Crude steel production increases

From gasworld Business Intelligence

6.8% Monthly average prices of LNG for August delivery to Asia rose by 6.8% from July, reaching $15.46 per million British thermal units (/MMBtu) as increased summer demand in North Asia was met with limited spot availability. That’s according to the latest monthly Platts Japan/Korea Marker (JKM) data for month-ahead delivery.

This is the first month-on-month gain in the monthly average JKM after it peaked at $19.139/MMBtu for March deliveries. The average August JKM was also 2.9% higher from a year earlier, breaking the year-on-year drop in monthly average recorded from May to July.

increased national demand, but each hindered by small starting bases which will impede their ability to post sizeable growth figures.

Captive production still dominates the region at around 84% of its make-up.

Supply scheme production and the merchant market still remain very small – expect to see rapid growth in onsite and merchant bulk over the next 5-8 years.

A brand new collection of Central Asia reports are available now, simply contact: marcus.jakt@gasworld.com

Semi spending set to increase From SEMI The continued rise of the smart phone and tablet computers is taking chip demand to all new levels it seems, with SEMI projecting vigorous growth in the semiconductor business next year.

The mid-year edition of the SEMI Capital Equipment Forecast shows an improving outlook for the chip equipment industry. Following two years of conservative capital investments by major chip manufacturers, SEMI forecasts equipment sales will reach $43.98bn in 2014, a strong 21% increase over an estimated 2013 equipment spend of $36.29bn.

Most major regions of the world will see significant equipment spending increases,

the report claims. The highest growth is forecasted in China (82%), Europe (79%), South Korea (31%), and Japan (21%). In North America this moderates slightly to just under double-digit levels at 9%.

Taiwan will continue to be the largest spender with $10.62bn estimated for 2014, and North America next at $8.75bn.

Projected semiconductor equipment sales

$ 43.98bn

Gain in Asia spot LNG prices

increasing privatisation of the previously stagnant state sector, high GDP figures are expected until at least 2016, with a calculated average of 5.8% growth per annum. The industrial gases market is estimated to be worth $189213m by 2020.

Uzbekistan is the secondlargest market in the region after Kazakhstan and is anticipating exciting growth rates over the next 5-8 years.

Tajikistan and Turkmenistan are both facing similar situations, foreseeing good growth prospects and

$ 36.29bn

Despite a recent history of decay and deprivation under the Soviet Union, the Commonwealth of Independent States (CIS) is now emerging as a region of growth with bright development prospects.

Problems with corruption, creaking infrastructure and political instability still persist in parts, but the industrial gases business is going through a period of considerable expansion and a positive outlook lays ahead.

Blessed with abundant natural resources and helped by the

2013

2014

1.9% World crude steel production for the 64 countries reporting to the World Steel Association was 132 million tonnes (Mt) in June 2013, an increase of 1.9% compared to June 2012.

World crude steel production in the first six months of 2013 was 789.8 Mt, an increase of 2% compared to the same period of 2012. Asia showed an increase of 5.5% while other regions recorded negative growth in first half 2013.

4.6% China’s crude steel production for June 2013 was 64.7 Mt, up by 4.6% compared to June 2012. Elsewhere in Asia, Japan produced 9.3Mt of crude steel in June 2013, an increase of 0.9% compared to the same month last year. South Korea’s crude steel production was 5.5 Mt in June 2013, down by 5.4% on June 2012. In the EU, Germany produced 3.7 Mt of crude steel in June 2013, a decrease of 2.2% over June 2012, though France produced 1.4 Mt of in June 2013, up 2.8% on June 2012. US output of 7.2 Mt of crude steel in June was down 0.2% on June 2012.

September 2013 | 29

HOT TOPIC

CO2 – Supply and demand STUART RADNEDGE

U

gasworld, Web Editor

ses of CO2 are bountiful in the gases industry; from its use in a long list of industrial applications, to its cryogenic use in food processing. But, it could be argued, the most well known usage of the gas is in the carbonated drinks industry.

According to Spiritus Consulting, in terms of CO2 consumed by industry in emerging economies, 80% to 90% is due to the Beverage carbonation industry. And as discovered by gasworld, on its recent conference in South Africa, the emerging market in the African continent is no exception to these statistics.

In the African continent, when it is divided into collections of countries, the South Africa region has always dominated monetary statistics and column inches.

With resource-rich coastline to the West and established gas markets in Morocco, Egypt and Algeria in the North – it is the East which is often in the shadow cast by the other region’s rise in the Industrial Gases sector.

To put the regions into perspective – Industrial Gas revenues in Africa as a whole are estimated at US$1.7bn.

East Africa alone is estimated at $93m.

To clarify, the East consists of Kenya, Tanzania and Uganda, though it’s important to point out that East Africa 30 | September 2013

also comprises Rwanda, Burundi, Ethiopia and varyingly - South Sudan and Malawi.

Time to shine However, like the proverbial phoenix from the flames the East region is beginning to attract a lot attention in a variety of ways. Hydrocarbon exploration has increased, in recent years, in the area which has stimulated rapid economic growth. Plans for the construction of a $10bn LNG terminal off the coast of Tanzania will also accelerate growth in the area – after the discovery of between 4 trillion and 6 trillion cubic feet of gas in the Indian Ocean. At the same time as this announcement was made, the BG Group also declared intent to explore three blocks off Tanzania – in partnership with Ophir Energy. The company said drilling from the Jodari well, drilled off Tanzania, was “excellent”.

A US Geological survey has estimated more gas lies off the shores of Kenya than off Nigeria.

And the Eastern coast of Africa is, of course, closer to the energy hungry economies of Asia.

With such developments being made in the East region, growth is sure to follow. And where growth in industry, employment opportunities, and infrastructure is occurring – an industrial gases sector will also be sure to grow – the Food and Beverage (F&B) industry.

A major part of the F&B sector is the use of gases, and namely carbon dioxide (CO2), in carbonated drinks. This is perhaps driven indirectly by improving economic times and the aforementioned exploration of hydrocarbons and resources. Expansion in CO2 trade is boosted by buoyancy in the region’s beverages industry.

CO2 is big business, especially in Kenya and Tanzania, and thought to account for a bigger volume

“CO2 is an important ingrediant in soft and alcoholic drinks and is the fastest growing gases product...” than any other gas traded, due in large part to the extensive natural CO2 well systems in Kenya, for example.

As described by Zulfiqar M. Wali, an independent analyser of the industrial gases sector, at the closing of this year’s third gasworld African conference.

He stated, “I want (to highlight) the Coca Cola brand that is worth $80bn.

It has a special ingredient – CO2.”

“Beverages – or alternatively CO2 – is an important ingredient in soft and alcoholic drinks and is the fastest growing gases product – especially in East and South Africa.”

“There is plenty of the

gas available but the issue is quality and reliability of supply.”

“Production and transportation costs increases the price for the end user, however.”

The conference in South Africa, which focused discussions on ‘Future Investments and the Supply Chain’, highlighted transportation as one of the major issues which could inhibit growth on a number of occasions. And it was the East of Africa which many of the informed and excellent speakers highlighted as suffering from particular issues with transportation.

Speakers regaled delegates with tales of treacherous driving, when discussing some supply issues encountered around the continent.

Graham Hunter, from Cryogas Express, said, “Tanzania is a challenge, my word, those bus drivers – they don’t care, they’ll keep driving towards you and keep going. All you can do is dive as quickly as you can off the road and out of their way as they won’t stop.”

“They are the worst in Africa!”

“We would not recommend travelling at night either in Africa – which is another issue you face with transporting goods by road.” gw

FULL ARTICLE ONLINE Read the full article online: www.gasworld.com/2002563.article

www.gasworld.com/hottopic

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INTERVIEW

Four generations, only one Indiana Oxygen An interview with Gary Halter, Vice President of Sales and Marketing

N

ative Hoosiers Walter and John Brant were raised in Indianapolis. While Walter was earning his Electrical Engineering degree at Purdue University, brother John worked as a test driver for the Packard Motor Company in Detroit, Michigan. Upon Walter’s graduation in 1910, the brothers became partners by starting Brant Brothers Automobile Agency and started off strong by quickly securing franchise rights for Lozier and Chandler Automobiles. But by 1914, as tensions in Europe threatened automobile sales, the Brant brothers looked for another entrepreneurial venture.

They found it in 1915 when they combined their engineering and sales talents to form Indiana Oxygen Company, the first industrial gas production plant in the state of Indiana, in Indianapolis.

The new process of electrolytic separation of water molecules into oxygen and hydrogen had only been introduced into the US just eight years earlier, and no such plant yet existed in Indiana. One of Indiana Oxygen’s first customers was the Indianapolis Motor Speedway, with the company providing compressed air during the Speedway’s ‘500’ Mile Race – completely eliminating the need to hand-pump every tyre.

Today, almost 100 years later, Indiana Oxygen still services the Indy 500, providing nitrogen gas for operating on-board air jacks and pneumatic tools for changing tyres, as well as providing welding operations required by the race teams for their racers. Indiana Oxygen remains the oldest continuous accessory sponsor at Indy.

48 | September 2013

In fact, Indiana Oxygen will soon be celebrating an even more historic landmark – it’s 100th anniversary – as Gary Halter, Vice-President of Sales and Marketing, explains to gasworld magazine on the eve of its own 100th issue.

“April 2015 will be our 100th anniversary. Four generations, owned always by the same family. We are proud that all of our managers have come from competitors or vendors,” he says.

“We have a rare history. For 50 years (most likely by design of the first generation) we were under $1m in sales.

Our second million didn’t come until 1982. But since then, we have grown more than 20 times that number.”

It has certainly been an illustrious history for the company as it has grown hand-in-hand with the development and application of the industrial gases business itself. In the 1920s, the primary use of gases was for welding metals, with Indiana Oxygen producing oxygen and hydrogen to facilitate welding projects and stop the practice of blacksmithing.

Over the years, the convenience, safety and mobility of welding using compressed gas ‘won out’.

It wasn’t long before the Brant Brothers expanded their entrepreneurial efforts to Kenosha, Wisconsin, where they built a second electrolytic oxygen/hydrogen plant, known as the Wisconsin Oxygen/ Hydrogen Company. However, by 1925, the brothers – tired of the constant rail travel back and forth between Indianapolis and Kenosha – sold the Wisconsin Oxygen/Hydrogen Company.

That wasn’t the end of the Brant Brother’s expansion efforts – when they sold the Wisconsin plant, they used the proceeds

to build an acetylene generating plant in the Indianapolis suburb of Beech Grove, a facility which remains today as one of the safest and most efficient plants of its kind in the country.

By 1930, business was booming and Indiana Oxygen moved to a larger building at 435 S. Delaware St. At the same time, technology had also advanced, and Indiana Oxygen turned to a new process known as atmospheric air separation, which allowed it to produce a full array of atmospheric gases. In 1937, Robert ‘Bob’ Brant, Walter’s son, joined the company upon leaving Purdue after his freshman year. Disappointed that Bob didn’t complete his degree, Walter assigned Bob to drive trucks for the company for nine years before promoting him to sales. He went on to become www.gasworld.com/interview

INTERVIEW

had independence once, but lost it when we scrapped our air separation plant in favour of dollar savings by buying bulk liquid. We are investigating the return to total independence.”

Asked about the market for independents from its position as one of such, Halter is keen to point out that while these numbers have dwindled over the decades, the independent distributor is ‘alive and well’. He says, “No, we are not one of the FEW independents (although

“We are limited by logistics and the desire to remain personally manageable.

Controlled growth is by design. We stress independence”

director of operations, before eventually becoming president. Bob was serving as chairman of the Board at the time of his death in 2006.

In 1960, the old air separation plant was replaced by new liquid oxygen, nitrogen, argon and CO2 pumping systems. With this change, Indiana Oxygen began producing specialty gases and research laboratory-grade high purity blends. Later, in 1979, Walter ‘Wally’ Brant II, Robert’s son, joined Indiana Oxygen after graduating from Purdue and then serving seven years as a Navigator on a B-52 combat crew during the Vietnam War. Under Wally’s leadership, the Indiana Oxygen team fostered unparalleled growth to become the largest independent gas and welding supply company in Indiana.

As Indiana Oxygen grew, it began to open satellite branch stores, the first in Muncie in 1978. The increased demand for gas products required Indiana Oxygen to move again in 1991 to a new state-of-the-industry palletised cylinder fill plant on Indianapolis’ northwest side, located on I-465 near west 71st Street.

Its automated fill operation enables the highest quality and production of any national company, the firm says.

So where is the company at today, almost a century later? Today, Indiana Oxygen is an independent, fourthgeneration family-owned company, with the emphasis on independence.

“We are limited by logistics and the desire to remain personally manageable.

Controlled growth is by design. We stress independence,” says Halter. “In fact, we

there are fewer than 20 years ago) – the independent distributor is alive and well in the US. As they are bought up, others start up.”

“However, the M&A activity causes us to develop a renewed Strategic Plan (every 10 years) to ensure: There is a future for our industry; and there is a future for Indiana Oxygen, that we deserve to be here and we are willing to invest to remain the important player in our market.”

Halter continues to explain that Indiana Oxygen lives by its key principles or ‘core values’ and while these ‘may not sound magical’ they are in fact ‘truthful’.

The company’s mission statement says it all, ‘It is our mission to serve our customers so well, and with such a high level of quality product and service, that they have no interest whatsoever in our competitors’.

Further, the company has a threepronged value proposition: Integrity; Family face behind the name; and Consistency.

Today and tomorrow Today, Indiana Oxygen has locations in Indianapolis, Lafayette, Muncie, Marion, Fishers, Bloomington, Cincinnati, September 2013 | 49

INTERVIEW

© Indiana Oxygen | Clockwise from left: Indiana Oxygen remains the oldest continuous accessory sponsor of the Indy 500 race; the company’s roots extend back almost 100 years; today Indiana Oxygen has comprehensive industrial and specialty gas capabilities throughout the Indiana region.

Seymour, Vincennes, Elkhart and Beech Grove as part of a comprehensive network in the region. Further, the company boasts one of the largest internet sales divisions in the country.

The fourth generation of Brants – Anne Brant Hayes and Jay Brant – joined the family business in 2010. As an independent, family-owned, fourgeneration company, Indiana Oxygen is large enough to meet demand, yet still flexible enough to meet any immediate or custom need.

Balancing this important dynamic is a significant challenge, however, and something that Halter cites as one of a number of challenges ahead for the Indiana Oxygen of tomorrow.

Halter explains, “Research and Development is dependent upon the giants. [The] Financial resources to devote to every new gimmick. Also, it is tough for a new start-up company due to capital investment. I also think remaining independent and maintaining a steady supply of product remains a challenge.”

Equally though, Indiana Oxygen sees opportunities on the horizon, including the possibility to become a regional 50 | September 2013

supplier of acetylene and specialty gases and the Microbulk market, where transport delivery is costly to the giants.

It is in fact the former, specialty gases, as well as continuous improvements (C.I.) and ERP System improvements to help

“There will always be the gases. It is our challenge to never let them be commoditised. We do that by adding value...” uncover weak practices where Halter sees the biggest growth potential.

The Brant Family continues to be involved in the communities in which it serves, and with the diverse experiences and perspectives the company has grown, a culture has been created that delivers the best for generations to come. While this is something that will not be eroded, neither will the need for industrial and specialty gases, as Halter conveys in his closing message to gasworld readers, “We are fortunate to have chosen this field

of industrial/medical/laboratory gases.

No-one will invent a replacement for the basis elements of oxygen, nitrogen, argon, helium and hydrogen.”

“There will always be the gases. It is our challenge to never let them be commoditised. We do that by adding value.” gw INDIANA OXYGEN CORE VALUES • Maintain a Fair Profit • Exercise Integrity in all of our decisions • Enhance the welfare of our people Keep the future always in mind Vision ‘Our vision is to remain the #1 company in our marketplace, thus greatly enhancing the work environment and overall lifestyle of our people and our surrounding communities.’

Mission Statement ‘It is our mission to serve our customers so well and with such a high quality of product and service that they have no interest whatsoever in our competitors.’ www.gasworld.com/interview

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September 2013 | 51

SPECIAL FEATURE

Welding gases

Past, present and future

I

t is no secret that the welding business and the gases industry are inextricably linked together. Economic growth in one is usually an indicator for growth in the other. These two important industries work in tandem to provide important solutions for regional infrastructure development and other areas.

The gases industry has always been a supplier of important welding gases, process gases, welding supplies, cutting machines, and a range of other important hardgoods, such as plants and distribution hubs. On the flip side, demand for welding services and solutions is an important driver for the industrial gases business, which may help to explain why there has been high levels of M&A (mergers and acquisitions) activity on the part of industrial gases suppliers who have merged smaller welding businesses to their own.

But what does the future hold for these two important businesses? Will innovation and strong connections keep the two working in conjunction to provide the essential services required for future infrastructure developments in

52 | September 2013

an increasingly globalised world, or will smaller welding companies give in to the designs of big players in the industrial gases business?

Will synergy prevail over individualism?

Can smaller welding distributors and suppliers hold out against these major players in the rough economic climate?

Shielding gases and equipment As mentioned above, the gases industry and the welding sector have enjoyed an almost symbiotic relationship where economic gains and losses are concerned.

Growth in one sector is, almost always, a good indicator of growth in the other, and vice-versa.

Traditionally, the gases industry has been a supplier of individual or mixed gases to the welding industry – a trend that started in the 1940s and 1950s.

Welding has always been central to construction, infrastructure, medicine, manufacturing, and many other uses.

Welding continues to be widely applied today due to its safety, reliability and economic viability.

There are now over a hundred different

welding processes, each suited to different tasks. The vast array of different welding processes has helped make welding an essential feature to modern defence and commercial building, offering flexibility of design and structural integrity that other methods of joining cannot offer.

It is important to remember that, while welding is considered across the globe as the most profitable and reliable means of joining metals, it is not a mature industry.

In fact, the welding industry is one in growth, and there is plenty of room for innovation and expansion into new areas.

Arc welding provides a good example, because it is currently one of the fastest growing areas among the various welding processes that are regularly employed.

Shielding gas-based processes have emerged as the dominant means of providing welding services, making the use of shielding gases an important feature to modern welding. Gas-shielding methods are used across a number of welding techniques now, including MIG, MAG, TIG and plasma. Shielding gases ensure that the quality of the weld is secured by protecting the molten weld www.gasworld.com/specialfeatures

Afrox’s new generation gas pressure regulator a world first Afrox has launched the most technologically advanced and engineered gas pressure regulator to hit the global industrial market. Called SMOOTHFLO™, the regulator embodies unique and innovative features which ensure its market leading status worldwide.

in the global gas pressure regulator market,” says Adams. “SMOOTHFLO™ is the new industry benchmark, incorporating all the elements of modern technologies and safety features demanded by the mining, fabrication, manufacturing, shipbuilding, railways and automotive industries.”

“SMOOTHFLO™ represents years of research and development investment, clearly demonstrating Afrox’s total commitment to being a leader in the gas equipment market,” says Nazmi Adams Afrox’s Head of Hardgoods and Exports.

The easy-to-operate SMOOTHFLO™ is one of the safest gas regulators in its class.

The break-off inlet stem is designed to ensure that should a cylinder and regulator be accidently impacted by a fall, the high performing excess-flow valve will automatically safely seal off gas discharge from the cylinder into the atmosphere.

Other safety features include a pistonembedded safety valve that eliminates the need for a diaphragm. Piston-driven technology produces excellent pressure stability at higher flow rates, which allows an operator to achieve greater gas cutting speeds.

“Afrox and BOC changed the world a decade ago when it launched the world class Series 8000 and Series 9500 range of regulators that changed the global competitive landscape. The unique combination of Afrox’s Gas Equipment Research and Development competencies and the German technology heritage of its parent, The Linde Group, has again developed a Leading product that will impact the global arena and significantly improve operator safety.” says Nazmi Adams.

The Development project team included marketing and technical experts from the many Linde global businesses and was project lead by Linde’s global product management team, making this a truly global product for the Linde Group.

“The SMOOTHFLO™ regulator is a South African developed, designed and engineered product, manufactured locally, to global standards which set new heights

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The mirror configuration of the SMOOTHFLO™ regulators prevents hose overlap and reduces the potential risk of oxygen/acetylene fires. The panel mounted gauges are an integral part of the regulator, improving safety and reducing potential pressure gauge damage.

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SPECIAL FEATURE

pool and materials from atmospheric gases, such as oxygen, nitrogen, and water vapour. Apart from shielding gases, the gases industry has driven innovation in the development of a wide range of technologies, including process gases, speciality gases, and a wide range of hardgoods.

At the moment, we are seeing, alongside regular M&A activity, gas companies sourcing the manufacturing of their own hardgoods in an attempt to boost gas sales.

Brian Deveaux, a founder and Principal of Leaders LLC – a US-based company that specialises in the development of M&A strategies – commented, “There is a trend emerging for large players in the gases industry to source manufacturing for their own private label hardgoods. The goal here is to both improve margins while remaining focused on of trying to sell as much gas as possible to customers.”

“This is currently one of the interesting trends in the US that may lead to further M&A activity across sectors. It is part of the clear link between the gases industry and the suppliers of hardgoods and welding equipment.”

Future Welding plays, and will continue to play, a major role in infrastructure development and manufacturing, especially in the production of vehicles, computers, and medical devices, just to name a few.

But as time goes on, industry experts have noted that there are many areas that could be improved upon, or innovative measures taken to open up welding to new areas. New technologies promise to extend welding processes beyond current applications, to joining non-metallic materials – currently welding extends to ceramics and polymers, but the scope to include engineered materials is now being explored with the use of hardgoods and gases that could make this a widely used application in the future.

The need to integrate welding and increase its use in manufacturing is also another factor many industry specialists are focused on. Welding will need to meet certain targets, including cost54 | September 2013

effectiveness, reliability, and lower energy consumption. Some experts would like to see energy use reduced by 50% through productivity improvements as decreased pre and post-heating operations, and the use of advanced, lower heat input welding processes, and avoidance of over welding. All these areas offer the gases industry the opportunity to improve upon their range of hardgoods, offering newer and more varied products.

Ensuring targets are met and welding continues to expand and integrate itself deeper in existing applications and new applications will have a direct effect on the growth of the gases industry, which is

“There is a trend emerging for large players in the gases industry to source manufacturing for their own private label hardgoods” why it comes as no surprise that so many transnational industrial gases companies are aggressively pursuing their M&A strategies in key markets.

Deveaux commented, “What we might expect to see in the future is a combination of gas and welding equipment companies, where the gas suppliers will seek to not just have their own private label of hardgoods, but to acquire the manufacturing for these goods also.”

The synergistic nature of the two industries means that the industrial gases companies already deeply invested in the development of welding solutions and innovations stand ready to provide the expertise directly to end-users instead of relying on welding companies to buy their goods. In effect, the close relationship these two industries benefit from has ultimately contributed to the gases industry finally deciding to expand itself into an area it has, for some time now, been in a prime position to leap into.

The gases industry has the required expertise to meet the current issues that need addressing if the welding industry

is going to continue being a growing, indemand solution to metal joining. Among these concerns are: • The need to reduce manufacturing costs, while improving productivity in the face of increasing material costs and wages.

• The need to meet expectations for high-quality end results, especially as welding has become important in the design and construction of offshore wind turbines.

Furthermore, the need to meet international emission standards is now playing its part to boost the welding industry. 2012 was a monumental year for UK wind power because it saw the opening of four new wind farms. Alongside this, British electricity companies are now subject to the Renewables Obligations, which means they must, by law, donate a percentage of profits towards renewable energy, including wind power. The manufacturing of wind turbines, especially offshore wind turbines, has opened up new vistas of opportunity for the welding industry. High quality weld seams, material flexibility, and overall design issues are challenging the welding and gases industries to come up with reliable means of ensuring high-quality, long life welding for turbines that will take the severe brunt of the elements.

M&A Despite the fact that the West is still reeling from the throes of a faltering economy, the world is moving towards urbanisation across many regions, including South America and Asia.

The demand that increased levels of urbanisation and megacity development places on infrastructure means that the welding business is sure to see growth and expansion in years to come. But as certain regions experience a decline in demand for welding services, a question arises: can smaller, locally-based welding companies hold out against a vicious economic future and the designs of the www.gasworld.com/specialfeatures

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September 2013 | 55

SPECIAL FEATURE

major players in the gases industry?

In recent years there has been a spike in activity surrounding mergers and acquisitions (M&A) among large players in the gases industry. Just looking at some of the major news for welding and industrial gases will reveal how hungry the gases industry is to buy up welding firms, especially in key markets and emerging economies. In recent years we have seen huge amounts of activity from major players. In 2012 we saw Airgas announce its acquisition of four welding businesses. These businesses are said to have a combined annual revenue of roughly $20m. Earlier this year Airgas also acquired two more industrial gas and welding suppliers, with combined revenues of around $30m. Its acquisition of Metreplex Service Welding Supply, Inc. and all its assets and operations has given the company a stronghold on the welding and industrial gases business in Texas across a number of key areas.

Airgas is not the first to snap up Texasbased welding companies. In December 2011, Praxair acquired Texas Welders Supply Company, at the time the largest supplier of welding goods and services in the region with an annual revenue of over $50m. In Canada Linde acquired Contact Welding, further strengthening its Canadian growth strategies.

The UK has seen its fair share of these sorts of acquisitions and mergers too. Smaller businesses are feeling the pressure, realising that they cannot compete with larger industrial gases companies. It is understood that local distributors in the UK have found the merger in 2006, alongside economic issues, to be another limiting factor for business.

As the government continues to emphasise growth in the UK’s industrial sectors as a priority for renewed economic activity and prevention against future downturns, industrial gas suppliers look set to profit from even greater producer margins. However, many distributors – especially smaller, independent distributors – are learning that survival is only becoming harder in a landscape 56 | September 2013

that is dominated by multinational distributors, who can penetrate a global market with a wide range of products and solutions better ready to meet enduser requirements, than smaller welding companies who have had to focus on regional-specific markets.

Conclusion Historically the gases industry and welding business have enjoyed mutual benefits from growth and expansion.

Demand for welding services have driven innovation in hardgoods, plants and other important equipment that the welding business could not do without.

Even safety regulation has played a part in the gas industry’s product range aimed towards the welding business.

This mutual relationship has become one in which new symbiotic ties are now becoming the norm.

Recent years have shown that key players in the global industrial gases business are no longer satisfied with just supplying the welding industry with necessary products. Instead, they are setting their sights on merging and acquiring welding companies and

meeting market challenges themselves.

The gases industry has demonstrated that it has the ability and expertise to provide innovative solutions to problems surrounding quality and costeffectiveness. In the past, the industry has been able to provide welding companies with new types of welding techniques through the development of shielding gases, process gases and equipment that could promise ever increasing quality of welding procedures.

It is unlikely that welding specific companies will disappear, but for now M&A strategies seem to be focused on merging welding with the gases industry in an attempt to exploit a global market where infrastructure development takes priority as urbanisation pushes demand ever higher. While some industry specialists may be unhappy with emerging trends of this sort, it stands to reason that M&A activity of this sort has the potential to ensure welding continues to play an important role in construction and the multitude of other areas that require it.

Furthermore, by combining these two industries issues that hinder growth can be more easily overcome. gw

Safety alert – Fumes in focus Welding, brazing and cutting are essential processes in manufacturing industry. All these processes depend, crucially, on industrial gases.

The British Compressed Gases Association (BCGA) is committed to ensuring the safe use of industrial gases in these processes and produces several useful guidance documents, as detailed below, which operatives and their employers should be familiar with.

A key hazard generated within these processes are the fumes – and precautions should be taken to avoid inhalation, not only by operatives doing the welding/ brazing/cutting, but also by others nearby.

The BCGA has engaged with the HSE (Health & Safety Executive) and others via the Welding Fume Team to try to influence attitudes and behaviours with respect to

fumes, particularly in encouraging the use of appropriate Personal Protective Equipment (PPE). The BCGA has published a Safety Alert on the hazards of FUME, TIS 24 and, we understand, is also in the process of updating this document.

In addition to this, the HSE’s Welding Fume Team has launched a new website (www.badairday.info) which explains in detail the safety concerns associated with FUME and which encourages appropriate safe behaviour. The Bad Air Day website has been produced to provide a resource and links to further information on the health risks from exposure to welding and thermal cutting fume, and the control of exposure. It is aimed at both employers and employees who use welding in the workplace, as part of their business or work. www.badairday.info www.gasworld.com/specialfeatures

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REGIONAL MARKETS

Regional markets Focus on: Welding gases and hardgoods

A

s our lead feature this month explains, the gases industry has always been a supplier of important welding gases, process gases, welding supplies, cutting machines, and other hardgoods.

While it is understood that, typically, welding gases, hardgoods and related equipment are a small part of an enduser’s total purchases, from as little as 1% in industrial operations, manufacturing processes can rely heavily on these products – and demand for welding services and solutions is an important driver for the global gases business.

Welding plays a major role in infrastructure development and manufacturing, especially in the production of vehicles, computers, and medical devices, just to name a few.

The welding gases and goods business is a core application or driver for the gases industry the world over, with the robust manufacturing sectors in mature markets like Germany or the US are good examples of strong demand for the gases 62 | September 2013

industry. The US market in particular is often in focus, especially where the acquisitions of welding gas and goods distributors are concerned. There have been high levels of M&A (mergers and acquisitions) activity on the part of industrial gases suppliers who have merged smaller welding businesses to their own, with Airgas, MATHESON and Praxair just three of the names that we often see in the headlines in this area.

The synergistic nature of the two industries means that the industrial gas companies already deeply invested in the welding solutions business stand ready to provide the expertise directly to endusers. While we may have mentioned Praxair, MATHESON and Airgas here, the latter being the largest US supplier of industrial, medical and specialty gases and hardgoods such as welding equipment and supplies, M&A activity is brisk throughout the industrial gas and equipment business as a whole – even during times of austerity. gasworld believes there are currently

800-900 operating in the cylinder business, a number that has continued to decline through the years, from a total that was once believed to be around 1,400. In 2001, there was still a plethora of independent distributors and producers, ranging in size from small, local, one or two-store businesses to several large regional companies formed by the fusion of firms in the same regional geography. This landscape has changed considerably over the last decade, however.

Rising distribution costs, combined with a hike in production costs, means we are now seeing distributors moving out of the welding and equipment businesses and into the gas producers’ sphere, to manufacture bulk specialty and medical gases. This will inevitably lead to a re-defining of the gas business structure in North America, for example.

We understand from Indiana Oxygen though (see interview on page 48), that the independent distributor is ‘alive and well’ in the US right now. Vigorous M&A www.gasworld.com/regionalmarkets

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September 2013 | 63

REGIONAL MARKETS

activity presents opportunities because no matter how many distributors the major players acquire, it is impossible to serve all customers in all segments and regions. As far as Indiana Oxygen is concerned, the welding gases market in North America is ‘competitive and prosperous for distributors of all sizes’ due to niche marketing and vendor partnerships, inspired by intense competition among the giants.

Emerging markets A similar M&A dynamic is thought to be at work in other regions such as South America, China, India, the Middle East, and Europe, and other world geographies. Given the application of welding gases and related equipment in infrastructure development, it stands to reason that these products find strong growth in the emerging economies. One such region is South and East Asia.

Joseph Yu, Head of Marketing for The Linde Group’s South & East Asia regional business unit, told gasworld about the welding gases and hardgoods business in the region and described the drivers for growth. “In South & East Asia, the growth of the welding gases and hardgoods market over the past few years has been driven by expansion in general fabrication and manufacturing, especially growth in the automotive, shipbuilding, construction and also oil & gas, as governments in the region continue to encourage foreign investment in these sectors,” he explained.

“Domestic industrialisation and rising urbanisation are also fuelling and supporting the demand for welding gases and products which are used in the construction of light fabrication including commercial and residential properties, bridges, tanks, and pipelines.”

Yu points out, however, that it is clear that recent economic volatility has impacted the industry, especially the slowdown in the metals and commodities sector. The presence of many local and regional players also continues to put downward pressure on prices and margins.

64 | September 2013

“In particular, single and two component welding gases/mixtures namely argon, carbon dioxide, and argon/carbon dioxide mixture volumes are challenged by local players with a low price offer, and this is driving the international gases companies to carefully choose what segments they play in and how they add value to their customers,” he said. To differentiate itself in the market, Linde is offering a one-stop complete solution to its customers, providing an integrated

“In South & East Asia, the growth of market over the past few years has been driven by expansion in general fabrication...” and cost-competitive product offering comprising the entire suite of welding gases, equipment, consumables and safety products.

“The rising adoption of automation in welding processes is also a major trend that we observe across the region,” explained Yu. “However, the move from MMAW (manual metal arc welding) to automatic processes (solid wire and flux cored wire) is growing much faster in our Southeast Asian countries compared to the South Asian countries.”

Keerin Chutumstid, Managing Director of Linde Thailand, added, “In Thailand, the extremely competitive environment has driven fabricators to become very cost-conscious to protect their margins. The shortage of qualified and experienced welders, combined with the fact that automation solutions are becoming increasing cost-effective – for example, the price of a welding robot today is significantly lower than a few years ago – has encouraged many fabricators to adopt more automated welding processes which also provide the benefit of higher productivity, and improved welding performance and quality.”

While the emerging market of South and East Asia offers a considerable

window of opportunity for the welding gases and hardgoods business, as with so many developing economies, it does have its limitations. Yu explained, “One of the major challenges faced by the welding gases and hardgoods players in Asia is the stiff competition from Chinese manufacturers of welding equipment and consumables who are seeking to expand their market share outside China.”

“While overall safety standards in the industry have been rising, clear quality standards at the local level have not been fully established, and safety practices continue to differ greatly between the global and local players.”

“At the national level, challenges related to power reliability and uncertainty around political succession in some of the countries in the region may continue to affect overall industrial growth.”

“Still,” Yu summarised, “given the good mid to longer-term prospects of the South & East Asian economies, inflows of foreign investments is expected to continue in the mid to longer-term and many governments in the region are also investing heavily in their power and energy sectors, which will positively impact the demand for welding gases and equipment.” gw BUSINESS INTELLIGENCE Key tools for any business gasworld has expanded its global research and business intelligence services, providing up-to-date information on the market size and supply structure of the industrial gas sector in four key regions and now 25 countries around the world.

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An introduction to...

Manifold systems

T

he concept of manifolding has been around in the welding, gases, and hardgoods industry for a long time. While it is a general term used in the compressed gas industry and can mean many things, this article focuses on manifolding at the customer site where gas is being distributed and used, centred around the idea that manifolding cylinders allows better cylinder control, improves safety, and increases productivity within the facility of the end-user.

Better Cylinder Control is a visible result as cylinders are not scattered amongst the work area, leaving each respective employee with the responsibility of changing out, maintaining and controlling the cylinders. Instead, cylinders are placed in a central location and therefore allow the easy and safe replacement of cylinders to be completed.

Safety is improved with the tighter cylinder control enabled by manifold use.

Cylinders are not being rolled in and out of the facility, causing potential hazards.

Additionally, if there is any issues with any of the cylinders it is located at a central point and can be contained with proper safety protocols.

Productivity increases can be realised through manifolding. Perhaps the greatest benefit, the cost in time in moving cylinders by various employees, cannot be overstated as the average time it takes an employee to change out one cylinder is 32 minutes – this can add up quickly. Furthermore, most companies cannot afford to run out of gas mid-weld, and a reserve cylinder bank prevents the opportunity of lost material, further justifying cylinder manifolding at a site.

Lastly, cylinders are uniformly emptied as part of the manifolding process, ensuring that half or partially full cylinders are not changed out precipitously.

70 | September 2013

The manifold system A manifold gas distribution system typically involves the following components in order to distribute molecules from the cylinder bank to the point of use: • Cylinders • Pigtails • Regulators • Valves • Headers • Switchover • Racks, chains and labels • Piping • Station drops This system is put together with the specific gas in mind and each system is configured per international, national and local code requirements. For example, fuel gases require a properly sized flashback arrestor to be part of the system. Piping material and sizing should be constructed given the particular gas, the operating pressure required and the length of pipe needed to connect each station.

One of the main components of a manifold gas distribution system is the switchover. Switchovers manually or automatically switch the gas supply from one bank of cylinders to the other, enabling one group of cylinders to be changed without experiencing a disruption in gas service.

An automatic controller switches the gas supply to the reserve bank when the gas supply from the primary bank is depleted. The changeover valve setting is reset after the empty cylinders have been replaced and that bank is in reserve. Typically, a visual or auditory alarm indicates low pressure in one bank of cylinders, while another indicator alerts that the reserve bank is operational. A switchover often includes

© Rexarc

an intermediate pressure regulator, a line pressure regulator, a changeover pressure switch, an excess pressure relief valve, a pressure gauge for each bank, and a further pressure gauge that indicates the line pressure.

The position of the four-way valve indicates which side (or bank) is primary and, therefore, affects the flow path of the gas inside the automatic controller.

The switchover is controlled by the secondary regulator pressure. When primary bank pressure falls below the secondary regulators pressure setting, the reserve bank begins flowing through that regulator. Cylinders are connected to the manifold header through flexible leads (pigtails) which are rated for the gas type and working pressure requirements. The header valve for each cylinder is typically equipped with a reverse flow check valve.

In summary, a manifold system can be a great addition to a welding facility by increasing safety and improving productivity. Designing a manifold system for correct and safe gas use requires the proper materials to be matched up with the application. gw WITH THANKS... gasworld would like to thank Rexarc International Inc. for supplying thismonth’s equipment profile. Rexarc has been providing innovative gas management and control solutions since 1924. www.gasworld.com/specialfeatures

With the Olivo insulated containers, my blast cleaning pellets are of ideal quality Robert King

Cryogenic cleaning

Model 925, 25 m3 acetylene production per hour

• Acetylene plants in operation in over 60 countries • Innovations in safety and productivity • Experienced technical service support Model 50-PS Portable • Intrinsically safe controls Acetylene Plant

THE GLOBAL LEADER IN ACETYLENE GAS PRODUCTION PLANTS AND GAS MANIFOLD SYSTEMS

• Rexarc gas manifolds and switchovers increase productivity, safety, and performance.

Industrial Gas Regulators

Insulated containers for the transport and storage of dry ice High quality thermal insulation

Automatic and Manual Changeover Manifolds Specialty Gas Equipment

Station Drops

20 models designed to meet your needs 55 to 600 litre capacity

COLD LOGISTICS

www.olivo.fr September 2013 | 71

COMPANY PROFILE

A-Gas Ltd celebrates 20 years of innovation The UK’s most dynamic and innovative speciality gases and refrigerant supplier is marking 20 years of successful growth

L

ooking at what has been achieved over the last two decades it is hard not to be in awe of A-Gas and how rapidly its operations have grown from its Bristol beginnings to a dominant force in the refrigerants market on a global scale.

A-Gas® UK began operations in 1993, with the International arm of the company established in the following year. Two years later in 1995 A-Gas Australia was created, and in the following year, A-Gas South Africa.

Further expansion of the business continued in the millennium with A-Gas SEA established in Singapore. The UK arm of the business acquired Refrigerant Products Ltd in 2004 and then a year later the company expanded into the Americas with A-Gas Americas (US) and CIJSA (Mexico).

In the same year (2007) A-Gas created its first JV trading subsidiary A-Gas Solpac Thailand. A-Gas AU also commissions an oxygen free nitrogen (OFN) filling plant and expands site in Laverton.

2008 Chestech Ltd is acquired and

72 | September 2013

A-Gas Australia establishes a new industrial and special products division.

In 2011 A-Gas acquires Technochem and SA Rural in Australia In 2012 A-Gas International secured a deal to buy both the USA’s RemTec International (now A-Gas RemTec), and Coolgas.

The company’s business is focused on: • Refrigerants • Environmental services • Industrial and special products • Performance chemicals To mark its anniversary A-Gas gave guests from the gases industry the opportunity to ride in the company’s balloon and enjoy breathtaking panoramic views across the Bristol city skyline.

A-Gas also announced two new product offerings. The first is Trace-AGas®, a leak detection gas. billed as the next generation leak detection product.

“Trace-A-Gas® is formed of 5% hydrogen and 95% nitrogen mixture,” says Jim Bishop, Product Manager – Industrial

Special Products & Performance Chemicals, adding, “with the use of a suitable electronic detector, engineers are able to locate even the smallest of leaks.”

“After extensive trials we found that leaks were more readily identified – whereas a leak detector spray would fail to identify them. One of the ‘test’ leaks included a join that was surrounded by Armaflex.”

“Further testing of additional units went well. A pinhole leak was found where leak detector spray has again failed. A further four leaks were discovered, despite an overnight nitrogen leak test at 27.5 bar which did not indicate any gas loss.”

A-Gas also announced its new Portable Environmental Recovery System (also known as PERSY), which has been designed and built in house to fill the gap for a portable, yet high capacity, gas recovery system.

“In the last five years A-Gas has grown both organically and through acquisition, selecting businesses that complement its own ethos. The company regards itself as a solution provider with strong environmental credentials. The A-Gas approach to business is based on building strategic partnerships with customers and suppliers, remaining responsive to customers’ needs, maximising efficiencies and meeting environmental obligations whilst continually looking for opportunities to diversify its product range and add value to its supply chain,” says Sally Fairman Group Corporate Development Director, A-Gas International.

A-Gas is one of the industry’s major success stories. Its formula for success and willingness to innovate will ensure that its remains a major player for many more years to come. gw MORE INFORMATION Hayley Russell Group Marketing Executive, A-Gas International +44 1275 376600 / marketing@agas.com

www.gasworld.com/specialfeatures

Complete Product Portfolio

Industrial Gas & LNG Croygenic Insulation

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For Technical information please contact Anatoli Kogan at +1-518-880-1959 / akogan@lydall.com

Three Gases for Life are hiding in this ad.

And warmest congratulations.

There are some occasions when congratulations are most definitely in order. The 100th issue of gasworld magazine is one such event. We are delighted to have been able to accompany the development of this successful magazine.

Our Gases for Life even play an active part in the creation of print media: in paper production, pulp washing can be carried out with carbon dioxide (CO2) while pulp bleaching is possible with oxygen (O2) or ozone (O3), thus rendering large quantities of chemicals superfluous.

After all, our environment is close to our heart!

Further information can be easily found at www.messergroup.com or www.gasesforlife.de.

September 2013 | 73

COMMUNITY

Around the gasworld in 140 characters

Community corner

01/08/2013 @BOConline In celebration of the great man Joseph Priestley: The man who discovered #oxygen

The forum for gas and equipment views and information

Online poll results Is the industrial gases and equipment industry doing enough to clean up other industries/applications?

Which of these ‘applications’ excites you the most for the future?

05/08/2013 @MesserGroup Messer continues to grow in China

17%

37.5% 62.5% Yes

07/08/2013 @Cryo_Gas @Cryo_Gas is now a member of the @Gasworld family of publications, effective August 5.

83%

No

Homecare/Healthcare

*Poll live on the gasworld website from 25/1/2013 to 13/3/2013

LNG Distribution

*Poll live on the gasworld website from 19/7/2013 to 13/8/2013

Where do you see the best industrial gas potential for growth?

12/08/2013 @AirLiquideGroup In 17 years, Air Liquide Korea (ALK) has established multiple production plants on 12 sites in South Korea

*Poll live on the gasworld website from 19/7/2013 to 13/8/2013

SOAM

ASIA-PAC

20%

EE

15/08/2013 @ICO2N Industrial CO2 Distillation Pilot Plant Proving Long Term Viability SFGate

40%

20%

followed by the rapidly growing China market and both Eastern Europe and South America.

Be sure to cast your vote online in current and future gasworld polls...

20%

It seems that the Asia-Pacific is the region attracting the greatest interest from the industrial gases community, if the poll results of users of the gasworld website are anything to go by.

Those users that participated in the poll run from July to August (2013) demonstrated that the Asia-Pacific is the region where they see the best growth potential for industrial gas, perhaps predictably

CHI

16/08/2013 @GlobalCCS How are we overcoming the barriers to carbon capture and sequestration technology?

EVENTS September 15th– 18th 2013 GAWDA Annual Convention Florida, United States www.gawda.org 74 | September 2013

September 25th– 27th 2013 Gas China 2013 Beijing, China gaschina.shinemediaworld.com

October 7th– 10th 2013 8th Doha International Oil & Gas Exhibition – Doha State of Qatar www.dioge.qatar-expo.com

October 7th– 10th 2013 Gas to Liquids 2013 London, United Kingdom www.smi-online.co.uk www.gasworld.com/community

The Butler Gas Specialty: Making Informed Decisions

The Decision Process for Expanding a Specialty Gas Filling Operation The success of Butler Gas Products, a 65 year old, 3rd generation family business, can be credited directly to their ability to think and plan for the long-term.

Seeing the Opportunities with Specialty Gas Filling.

“We are always thinking long term,” said Abydee. “It was clear to us that our specialty gas filling operation was an area where we could become more independent, and therefore more reliable for our customers.”

Doing the Necessary Homework.

As a participant in the BIG Group (Buying and Information Group), Butler investigated how other businesses were managing their specialty gas services, and how reinvestment in this area had very positive long-term results.

Finding the Right Partner for a Long Term Solution.

While touring the nexAir and Matheson facilities, Butler executives observed lab set-ups, and witnessed the operation of an automated blend cell. Both companies were using Weldcoa’s Precision Specialty Gas Products systems. “It was our Aha! moment,” admitted Abydee. “We knew they were the right partner for us.”

Butler quickly determined that Precision’s products and services were a smart investment. “We have a reputation for being the expensive guy,” noted Hector Villarreal, President of Weldcoa. “But when distributors do a long term analysis we always come out as the better value. Our products work right out of the box, and they work well for a very long time– we guarantee it.”

Creating a Profitable Specialty Gas Filling Facility – that Sells Itself.

Butler worked closely with Precision to determine the optimal configuration for their specialty gas filling operation. It is state-of-the-art, and includes Sur-Fill iQ-s specialty gas filling automation.

New Specialty Gas Filling features: • 600 square foot Lab • Sur-Fill iQ-s: Automated

Gravimetric Filling station • 6K Booster • Manual Cylinder Inverter • Double Stacked Vacuum

Pump Stand Abydee concluded that not only did Precision exceed their expectations in all aspects of the project, but the system has performed flawlessly, and it actually sells itself when they walk customers through the new operation.

“Our goal for continuing to build our business and deliver for our customers was once again realized through our process of internal evaluation, research and alignment with experienced partners.”

Abydee Butler, Vice President Butler Gas Products Company

How it Worked ant Visits Pl

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Sp

ialty Gas

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S P E C I A LT Y G A S P R O D U C T S

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A Weldcoa/AsteRisk Partnership

Butler’s quest for continued improvement and growth focuses on their specialty gas business.

They research and learn about the possibilities through peer networks and plant visits.

Butler hires Precision Specialty Gas Products, a division of Weldcoa, to ensure quality and long-term dependability.

Contact Precision Today! 630.806.2000 www.precisiongasproducts.com