Sector News

Linde, Petronas JV to build air gas facility at Pengerang

September 20, 2016

Linde Malaysia, a subsidiary of The Linde Group, has established a JV 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’ refinery and petrochemicals integrated complex (RAPID), within the Pengerang integrated petroleum complex (PIPC) in southern Malaysia.

Linde and Petronas’ JV company, Pengerang Gas Solution (PGS), has also secured long-term agreements for the supply of oxygen and nitrogen to the 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 $167 MM.

Linde’s first JV with PGB, Industrial Gases Solutions (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, also concluded the engineering, procurement, construction and commissioning contract with PGS. Linde’s air separation technology offers high energy efficiency and operational reliability.

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 Mbpd refinery, a naphtha steam cracker and an integrated petrochemical complex producing ethylene, propylene, butadiene and various other derivatives. These highly specialized 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. Refineries also require large quantities of gases to control various processes including equipment performance, conversion efficiencies, wastewater treatment and cleaning.

Source: Hydrocarbon Processing

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