Praxair, Inc. started up a second nitrogen plant at its facility in Kirtland, New Mexico, to support growing nitrogen demand in the San Juan basin, which includes southwestern Colorado and northwestern New Mexico.

Conn-based Praxair, Inc is the largest industrial gases company in North and South America. The company produces, sells and distributes atmospheric, process and specialty gases, and high-performance surface coatings.

The company said its the new plant, along with an additional liquefier expansion to be completed later this year, will increase total capacity at the site to 300 tons per day of liquid nitrogen, in addition to gaseous nitrogen that is being supplied to local pipeline customers under long-term contracts.

“Praxair’s new plant will strengthen our supply position in the San Juan basin and help us meet the increasing pipeline and liquid nitrogen demand from customers in this geography,” said Gerald Miller, vice president of the West Region for Praxair’s U.S. industrial gases business.

Demand for nitrogen continues to grow as local oil and gas operators develop new oil resources in the area, the firm said. Nitrogen is an inert gas that can effectively replace water that is typically used in hydraulic fracturing.