The joint venture (JV) between Linde Malaysia Sdn Bhd and PETRONAS Gas Berhad has secured another long-term agreement to supply industrial gases to the Pengerang Integrated Petroleum Complex (PIPC) in Malaysia, which includes an ethylene oxide and ethylene glycol plant.
Now known to be Pengerang Gas Solution Sdn Bhd (PGS), the JV company will also build a state-of-the-art industrial air gas facility that will produce gaseous oxygen (O2) and nitrogen (N2) to supply the needs of PETRONAS’ Refinery and Petrochemicals Integrated Complex (RAPID) in southern Malaysia.
As such, PGS will build two large air separation units (ASUs) and all associated gas facilities under a total investment of €150m ($168m).
It is understood that PETRONAS will hold a 51% stake in the JV, with the Malaysian branch of the Tier One corporation obtaining the other 49%.
Sanjiv Lamba, Chief Operating Officer for Asia Pacific and Member of the Executive Board of Linde AG, emphasised, “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.”
This added capacity will add to Linde’s already impressive portfolio in the continent, as gasworld’s Research Analyst Toby Pimlott explains, “The Tier One player held a commanding market share of 39% in South East Asia in 2015. Linde also dominated in Malaysia specifically, where it held a 49% stake in the $460m Malaysian gases business.”
Construction on the project is expected to start in the third quarter of 2016, with commissioning anticipated by the end of 2018.