Very small volume users, in particular those with multiple small volume usage points that may be periodically relocated, rely on high pressure cylinders. Cylinder gases distribution is inherently a locally-focused business. The larger integrated industrial gas companies have reduced their direct involvement in this business in recent years.
Cylinders are primarily distributed by independent distributors (of varying sizes) that buy merchant gases in bulk liquid form from producers and package the gases into cylinders in their facilities.
These businesses have typically focused on the welding industry, and handle a full line of welding-related products. Increasingly, cylinder gases, in particular oxygen and oxygen mixes, are being used for home medical uses, and specialty stores focused on that market have become more common. Depending upon customer needs and preferences, distributors may deliver cylinders to the customer’s site or customers may return used cylinders and pick up new ones at a specialty store.