Linde establishes a joint venture with Petronas

Linde establishes a joint venture with Petronas

Sep 19, 2016
3 min read
Print this page

Linde has established a joint venture with Petronas that will invest US$167 million (EUR 150 million) to build a new industrial air gas facility at Malaysia's largest integrated petroleum complex in the south of the country.

The JV company is formed of Linde Malaysia Sdn Bhd, a subsidiary of The Linde Group, and Petronas Gas Berhad.

The industrial air gas facility will produce gaseous oxygen and nitrogen to supply the needs of Petronas' Refinery and Petrochemicals Integrated Complex (RAPID), within the Pengerang Integrated Petroleum Complex (PIPC).

When completed in early 2019, RAPID will include a 300,000 barrels-per-day refinery, a naphtha steam cracker and an integrated petrochemical complex producing ethylene, propylene, butadiene and various other derivatives.

Linde and Petronas' joint venture company, Pengerang Gas Solution Sdn Bhd (PGS), has also secured long-term agreements for the supply of oxygen and nitrogen to the facility which includes an ethylene oxide/ethylene glycol plant. PGS will build two large air separation units and associated gas facilities resulting in a total investment of US$167 million.

Linde's Engineering Division, which will design and construct PGS' air separation units (ASUs), also concluded the engineering, procurement, construction and commissioning (EPCC) contract with PGS. Linde's world-leading technology in air separation design offers high energy efficiency and operational reliability.

Dr Wolfgang Buechele, chief executive officer of Linde AG, said: "This major on-site project enables us to leverage the technical and execution expertise of our Engineering Division and the operational know-how of our Gases Division in very close cooperation. It further strengthens our market position as the leading air gases supplier to the oil and gas and petrochemicals sector."

Sanjiv Lamba, chief operating officer for Asia Pacific and Member of the Executive Board of Linde AG, added: "Asia is a key growth market for The Linde Group. This is Linde's second joint venture with Petronas Gas Berhad and it underscores our long-standing and successful partnership."