Air Liquide México has secured 20-year hydrogen supply contract from the Mexican state-owned oil firm Pemex.

Under the deal, Air Liquide will supply hydrogen to Pemex’s Miguel Hidalgo refinery in Tula for a period of 20 years.

The deal with Air Liquide is expected to generate savings of around 30% for the Mexican oil company.

As per terms of the deal, Air Liquide will serve as operator for the existing facility and invest in a second plant to supply the required hydrogen for Tula refinery’s expansion projects.

Pemex said the deal will help in improving its operating performance, as well as allow it to allocate more resources to the processes that are significant to refining.

Located around 150km from Mexico City, the Miguel Hidalgo refinery was built in March 1976, and began operation in 1977.

The refinery’s initial processing capacity was about 150,000 barrels per day (bpd), while currently holds a processing capacity of 320,000bpd.

The facility supplies motor fuels to different Mexican states such as Hidalgo, Morelos, Queretaro, Celaya and Guerrero.

Air Liquide Mexico, which began operations in 2011, currently operates six plants. It is also involved in the construction of one more plant in the country.

The firm operates the country’s largest air separation unit (ASU), and is the leading producer of oxygen in the northern part of the country.

With operations in around 80 countries, the parent firm Air Liquide group provides gases, technologies and services for its customers.