Praxair starts new plant in Peru On October 4, 2016, Praxair (PX) announced the start-up of the new hydrogen plant at Repsol’s La Pampilla refinery near Lima, Peru. The new facility will have the capacity to process 12 million standard cubic feet per day using Steam Methane Reformer (or SMR). A new Praxair facility will be built adjacent to the hydrogen plant that will recover and purify carbon dioxide generated out of the SMR and will be used for the manufacturing of food-grade liquid carbon dioxide.
The new plant will produce gasoline, liquefied petroleum gas, jet fuel, kerosene, diesel, and asphalts and will supply it within the local market for consumption. In other news, Praxair signed a long-term pact with Brazilian pulp producer Fibria (FBR) to supply oxygen. Fibria is expanding its Tres Lagoas facility, and the expansion is expected to be complete by 2017. However, Praxair didn’t disclose any financial details about the deal. Praxair stock prices Praxair shares dropped 1.6% for the week ended October 7, 2016, and closed at $118.85. Praxair traded 2.2% higher than the 100-day moving average price of $116.30, indicating an upward trend in the stock. Analysts expect PX’s 12-month target price to be at $126.40, implying a potential return of ~6.4% over the closing price of October 7, 2016. On a year-to-date basis, PX has moved up by 16.1%. Praxair peers Air Products and Chemicals (APD) and International Flavors and Fragrances (IFF) dropped 10.2% and 3.9% for the week, respectively. Investors can indirectly hold Praxair by investing in the SPDR S&P Dividend ETF (SDY), which has invested 1.2% of its total holdings in Praxair as of October 7, 2016.