On-site Nitrogen Gas Generation: Supply Agreement Considerations

An Airgas on-site gas generation system
Editorial Staff | February 13, 2019

If you’re buying nitrogen, you have a variety of possible supply methods when it comes to sourcing your nitrogen gas. Cylinders, MicroBulk, bulk liquid supply and on-site nitrogen gas generation are options you will come across and there are a few key considerations to take when determining if an on-site generator is right for you. According to Prean Chetty, On-sites Commercial Manager for Airgas, an Air Liquide company, one big consideration when searching for an on-site gas generation solution is whether to buy your own nitrogen generation unit or to outsource the nitrogen production and supply from a supplier.

Gas supply agreements are more commonly known as Over the Fence (OTF) agreements, where the gas supplier builds, owns, operates and maintains the on-site generation unit and supplies nitrogen gas over the fence. While many people believe that buying and operating your own on-site gas generation supply system is less expensive than entering into a gas supply agreement, that is not always the case.

Why Choose an OTF Agreement?

To fully understand the Total Cost of Ownership (TCO), Chetty provides an insightful list of OTF benefits that should be considered.Get lower TCO with proprietary technologies and guaranteed price over time

  • Get lower TCO with proprietary technologies and guaranteed price over time
  • No extra costs associated with downtime maintenance, operation or parts
  • No after-sale services required
  • Liquid nitrogen used as backup to the on-site gas generator
  • Benefit from highly reliable supply and extensive experience in operational and risk management
  • Reduce operations costs with supplier-provided resources
  • Realize guaranteed long-term performance
  • Access cryogenic and safety expertise
  • Rely on your vendor for equipment service and maintenance
  • Minimize your initial investment and maintain consistent payment amounts

When searching for the most efficient on-site nitrogen supply for your business, always consider the best option that will help to ensure a long-term, reliable and competitive gas supply. Not only will this provide you with peace of mind, but it will also give you the time to focus on your core business for the future.

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CONTRIBUTORS:
A headshot of Prean Chetty, Airgas Onsites Commercial Manager

As Airgas Onsites Commercial Manager, Chetty has previously held positions in finance and business development with knowledge that covers multiple functions and industries. In his current role, he continues to assist customers to improve safety, operations efficiency and overall cost savings throughout the country with Airgas' Onsite technology portfolio.


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