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Praxair China has signed a long-term supply contract with Yankuang Guohong Chemical Co., Ltd. and Yankuang Group to supply industrial gases to its coal gasification process for the production of methanol and downstream chemicals at its chemical park in Zoucheng city, in northern China.

To meet the gas demand of Yankuang Guohong for its coal to chemical project, Praxair will construct a large air separation facility with a capacity of 3,000 tons of oxygen per day and purchase Yankuang Guohong's existing air separation units. The new plant is scheduled to start up in late 2014 and will replace Yankuang Guohong's existing air separation units. The liquid oxygen, nitrogen and argon produced from the existing air separation plants and the new facilities will be integrated with Praxair China's liquid production and distribution network in the region, improving distribution efficiency and reliability to the customers in the rapidly growing regional merchant market.

This will be the fourth large capacity air separation plant of 3,000 tons per day or greater that Praxair has won in China. Two of these plants, of similar capacity, have been built and are currently operating in Zhenjiang, Jiangsu province and Wuwei, Anhui province, to supply customers in the coal based chemical industry. All of these plants are under long term sale-of-gas contracts.

"With Praxair China's leading technology, excellent management team and strong financials, the strategic cooperation between Yankuang Group and Praxair will be a win-win relationship", said Mr. Wang Xin, Chairman of Yankuang Group, "We believe this project will achieve great success."

"We are pleased to work with Yankuang Group, the leading coal based chemical and gasification technology enterprise in China," said Dr. Anne Roby, President of Praxair Asia. "I look forward to building a long-term and sustainable commercial relationship with Yankuang and contributing to the industrial and economic development of this region."

About Yankuang Group

Yankuang Group, with total assets of 142 billion RMB, is the largest coal exporter and producer integrated with coal further-processing and one of the top three chemical production enclaves in eastern China.

About Praxair China Praxair (China) Investment Co., Ltd is a leading industrial gas provider in China headquartered in Shanghai. It has 21 wholly owned companies, 10 joint ventures and over 1,400 employees in the country. More information on Praxair China is available on the Internet at www.praxair.cn

About Praxair

Praxair, Inc. (NYSE: PX), is the largest industrial gases company in North and South America, and one of the largest worldwide, with 2011 sales of $11 billion.