Strategic move aims to meet rising industrial demand and strengthen market presence
Key Takeaways:
i) Pakistan Oxygen Limited (PAKOXY) will invest approximately PKR 1.3 billion ($15.5 million) to establish a new hydrogen production facility at Port Qasim.
ii) The plant will supply hydrogen under a 15-year agreement with a major specialty chemicals manufacturer, Archroma Pakistan Ltd.
iii) This investment is a strategic step for PAKOXY to enhance its hydrogen production capabilities and cater to the increasing demand for industrial gases.
Karachi, Pakistan – Pakistan Oxygen Limited (PSX: PAKOXY) has announced a significant investment of around PKR 1.3 billion (approximately $15.5 million) to build a state-of-the-art hydrogen production plant at Port Qasim. The company disclosed this development in a notice to the Pakistan Stock Exchange (PSX) on Monday, signaling a strategic move to capitalize on the growing demand within the industrial gases sector.
The new hydrogen facility at Port Qasim will operate under a long-term, 15-year supply agreement with Archroma Pakistan Limited, a leading specialty chemicals manufacturer. According to PAKOXY, this partnership underscores a shared commitment to operational excellence, sustainability, and long-term value creation for both entities. The agreement ensures a reliable and uninterrupted supply of hydrogen to Archroma’s plant located in Jamshoro, Sindh, supporting their critical operations and growth ambitions.
This investment reflects Pakistan Oxygen’s commitment to providing dependable and innovative gas solutions to its industrial clients and strengthens its position in the hydrogen market. The upcoming plant is designed to meet the highest standards of efficiency and reliability, enhancing PAKOXY’s overall hydrogen production capabilities.
The establishment of this hydrogen production facility at Port Qasim comes at a time of increasing global and domestic interest in hydrogen, not only as a clean energy alternative but also as an essential input for various industrial processes, including the manufacturing of fertilizers and petroleum refining, which are already significant uses of hydrogen in Pakistan.
