Petronas Gas Bhd, a unit of national oil firm Petroliam Nasional Bhd (Petronas), plans to conclude talks with Linde Sdn Bhd on the development of air separation unit (ASU) in Pengerang Integrated Complex (PIC) in Johor by year-end.

Petronas Gas and Linde Malaysia signed a head of agreement (HoA) in November last year. Under the HoA, the ASU will be used to create separate atmospheric air into its primary components, typically nitrogen and oxygen.

It is envisaged that the ASU will be the sole utilities facility for the supply of industrial gases, mainly oxygen and nitrogen to PIC’s customers. The project is anticipated to have an equivalent capacity of 1,600 tonnes per day (TPD) oxygen and 1,800 TPD nitrogen generation and is targeted to start operations in the fourth quarter of 2018.

Linde Malaysia is a subsidiary of German’s Linde Group, which specialises in industrial gases, healthcare and engineering. It has an established presence in 100 countries across five continents.