Linde-Petronas JV to invest Euro 150 mn for industrial gases facility

Linde Malaysia Sdn Bhd, a subsidiary of the Linde Group and a producer of industrial gases, has established a joint venture company with Petronas Gas Berhad (PGB) to build an industrial air gas facility that will produce gaseous oxygen and nitrogen to supply the needs of Petronas’ world-scale Refinery and Petrochemicals Integrated Complex (RAPID), within the Pengerang Integrated Petroleum Complex (PIPC) in southern Malaysia.

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 world-scale refinery and petrochemical complex 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 Euro 150 million.

“Asia is a key growth market for the Linde Group and we are the market leader with over 50 years as the leading industrial air and medical gases supplier in Malaysia. This is Linde’s second joint venture with Petronas Gas Berhad and it underscores our long-standing and successful partnership. We are proud to continue to create value for our customers through our world-class technologies and innovative solutions,” said Sanjiv Lamba, chief operating officer for Asia Pacific and member of the executive board of Linde AG.

Linde’s first joint venture with PGB, Industrial Gases Solutions Sdn Bhd (IGS), is an air gases trading company. Linde today, through IGS, also supplies gases to Petronas’ subsidiaries in Malaysia, including to its Kerteh and Gebeng Petrochemical Complexes.

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. 

RAPID is part of Petronas’ largest investment in Malaysia to date - the Pengerang Integrated Complex (PIC) development - which forms part of the Johor State’s 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. These highly specialised chemical products are building block materials for most manufacturing supply chains of consumer products such as plastics, polyester, synthetic rubber, styrofoam and household cleaning products.