Linde has announced the signature of a long-term agreement with ExxonMobil Asia Pacific Pte. Ltd. to support the latest multi-billion dollar expansion of the company’s integrated manufacturing complex in Singapore.
Announced on the eve of gasworld’s Future-Proofing Industrial Gases Summit in Singapore today, the deal represents the single largest sale of gas contract in the history of the newly merged Linde and its legacy companies.
Linde will invest $1.4bn in expanding its existing gasification complex at Jurong Island, integrating it with ExxonMobil’s project to produce and supply additional hydrogen and synthesis gas.
The project will include building and operating four additional gasifiers, a 1,200 metric ton per day (tpd) air separation plant (ASU), as well as Linde’s proprietary downstream gas processing units and sulphur recovery plants. Linde’s gasification complex will produce and supply hydrogen and synthesis gas to ExxonMobil by upgrading the heavy residue feedstock from its new facilities.
Linde will also invest in a dedicated set of pipelines for the transfer of feedstocks and products between ExxonMobil and Linde facilities. Upon completion, the investment will also supply hydrogen, carbon monoxide and synthesis gas to other customers on Jurong Island and quadruple Linde’s present capacity.
The long-term agreement was signed by Sanjiv Lamba, Executive Vice-President, Asia-Pacific at Linde plc and Gan Seow Kee, Chairman & Managing Director, ExxonMobil Asia Pacific (pictured).
The small island city-state of Singapore has been the largest industrial gas market in the South East Asian region for the past few decades. This is now mainly thanks the sprawling operations and high level of industrial gas demand of the petrochemical complex on the man-made island of Jurong, and the advanced electronics manufacturing industry located around the city.
Indeed, just over 23% of the Singapore’s industrial gas revenue is generated through onsite and pipeline contracts that supply these industries, according to gasworld Business Intelligence.
Gas market growth has been good over the past decade for Singapore, averaging 9.5% year-on-year (YoY). In 2017, gasworld estimates that industrial gas sales amounted to just under $926m, with Air Liquide being responsible for the highest revenues made – just over $513m, equating to a market share of 55%.
Linde had a market share of around 18% in the country in 2017 and has steadily expanded and diversified its operations there in recent years, ramping up its supply of specialty gases to the electronics industries and expanding into the healthcare business too, supplying medical oxygen to more than a third of all hospitals in Singapore.
Linde also owns one of the largest liquid CO2 production plants in Singapore, also situated on Jurong Island, and operates one of the largest gasification plants in the Asia-Pacific region, producing gaseous hydrogen and carbon monoxide, as well as a high performance air separation unit (ASU).