Linde Gases, a business division of The Linde Group, and Total Raffinerie Mitteldeutschland are extending their existing partnership by a further 15 years in a contract worth around €1bn ($1.2bn).
Signed in Leuna back in June, the contract is due to take effect on 1st January 2018. This new deal propels the two-decade partnership between both companies towards a long-term future.
Since the Total refinery in Leuna commenced operations in 1997, Linde has been supplying it with hydrogen (H2), oxygen (O2) and nitrogen (N2) from its local facilities. With an annual consumption volume of over 560 million standard cubic metres (MMSCFD) of O2, over 180 MMSCFD of H2 and 120 MMSCFD of N2. Total’s central Germany location ranks as Linde’s largest single customer in Germany. The agreement also covers the operation of a gas separation plant at the refinery site, which recovers carbon dioxide (CO2) from the refinery’s flue gases for resale to Linde customers.
Dr. Willi Frantz, Total’s Managing Director, said, “With the newly agreed provisions we will continue our long-term collaboration over the course of two decades. We are pleased to continue our partner-like relationship and constructive cooperation.”
Olaf Reckenhofer, Head of Region Central Europe at Linde’s Gases, added, “We are delighted to be further investing in our long-standing and successful collaboration with Total in Leuna. While our Remote Operation Centre at this site is of international significance to us, local long-term contracts remain the bedrock of our business there.”
Linde’s operations in Leuna
The Leuna Chemical Complex is Linde’s largest gases production hub in Europe. The location covers the full spectrum of products, ranging from air gases, CO2, H2 and rare gases to acetylene and specialty gas mixtures. At the Remote Operation Centre in Leuna, 116 plants across Europe are remotely monitored and operated. Linde has invested more than €500m in the location since 1990.
Total Raffinerie Mitteldeutschland
The Total Raffinerie Mitteldeutschland is located in the Leuna Chemical Complex. It is regarded as one of Europe’s most high-tech refineries and produces around three million tonnes of petroleum per year. The refinery is also Germany’s largest producer of methanol, which is an important feedstock for the chemicals industry. Diesel, heating oil, LPG, naphtha, aviation fuel and bitumen are also part of the production mix. Every day, the refinery’s distillation plant processes an average of 30,000 tonnes of crude oil, which is mainly piped in to storage tanks from Russia. The finished products are supplied to the world market via road, rail and pipeline.