Agentic AI · Phase 2 Proposal
Steering Committee · April 2026

Merchant Gas Fleet · 35 Plants

Agentic AI
for the merchant gas fleet.

A six-month, two-plant, Finance-gated pilot of the coordination layer. Human-in-the-loop, read-only, kill switch at month six.

Phase 1 18 agents delivered
Phase 2 ask $1.8M pilot ceiling
Fleet run-rate $16–23M/yr at stake
Decision by Q2 2026
The answer, on one page
02

Recommendation

Approve $1.8M to buy an option on $16–23M/yr — with a kill switch.

Situation

Merchant-gas operations leak $2.5–4.0M per plant, per year across four margin pools. Across 35 plants that rolls up to $90–140M/yr. The leaks sit across silos — APC cannot close the gap.

Complication

Chemicals and refining are 30–50% deployed on AI. Industrial gas is at zero coordinated fleet deployments. By 2028 this becomes table stakes at contract renewal.

Resolution

Approve $1.8M Phase 2 — a 6-month, 2-plant, Finance-gated pilot of the coordination layer. Phase 1 is done. Four kill-switch gates at month 6 cap downside at the pilot budget itself.

Pilot budget$1.8M
At stake$16–23M/yr
Decision dateQ2 2026
Decisions needed3
Why now
03

The 30-year arc of operations

Operational excellence is a thirty-year arc. We are entering its final chapter.

1990sSix Sigma 2000sLean Ops 2010sAPC 2020sDigital Twin NOW Agents

Merchant gas · North America

$33B 2026 · 4.8% CAGR

Industry structure

Top 5 suppliers hold ~60% share. Price, scale, geography — exhausted as margin levers. Operations is the only one left.

The sector that has not moved
04

The competitive context

AI in industrial operations is already happening. Industrial gas is the sector that has not moved.

Chemicals ~50%

of manufacturers have deployed AI in production environments.

Production-grade AI across major chemicals operators.

Refining · Oil & Gas 30%+

productivity gain from end-to-end AI in industrial operations.

Autonomous optimization across major refining operators.

Industrial gas 0

fleet-scale coordinated deployments disclosed.

Announcements, not coordinated fleets.

A mature industry lagging its peers on a terminal technology pays a margin tax every year the gap stays open.

Where margin leaks today
05

LMB E2E diagnostic · Airgas internal

Five leaks, four pools, $2.5–4.0M per plant per year.

Per-plant, per-year ($K)

Emergency spot purchases$150–200K
Boil-off reduction$120–160K
Flat-rate power buying$100–150K
Unplanned downtime$80–120K
Route optimization$50–90K

Per plant, per year

$2.54.0M

35-plant fleet, gross

$90–140M/yr

Not estimates — bookkeeping from our own diagnostic.

Why APC cannot close it
06

The coordination gap

Four silos. Zero coordination. Four correct decisions still equal a suboptimal outcome.

Plant Engineer

Sees: flows, pressures, compressor health.

Manages boil-off and production balance.

Dispatcher · Logistics

Sees: trucks, customers, orders, ETAs.

Manages emergency routes and spot purchases.

Reliability Team

Sees: vibration, trends, health signals.

Manages predictive maintenance and downtime.

Energy Desk

Sees: power markets, demand response.

Manages peak pricing and load shed.

The fence line

APC optimizes inside the fence line. The leaks happen across it.

This is not an AI bet. It is a coordination bet.