PETALING JAYA: Petronas Gas Bhd (PetGas) has formed a joint-venture company with Linde Malaysia Sdn Bhd to develop a new industrial air gas facility at the Pengerang Integrated Petroleum Complex in Johor with a total investment of 150 million euros (RM693.4mil).
The joint-venture company, known as Pengerang Gas Solution Sdn Bhd (PGS), has already secured long-term agreements for the supply of oxygen and nitrogen to the Refinery and Petrochemicals Integrated Complex (Rapid), which included an ethylene oxide/ethylene glycol plant, in the state.
In a statement, Linde Malaysia said the new industrial air gas facility would specifically produce gaseous oxygen and nitrogen to supply the needs of Petroliam Nasional Bhd’s (Petronas) Rapid project in Pengerang.
“PGS will build two large air separation units and associated gas facilities resulting in a total investment of 150 million euros,” it said.
Linde Malaysia is a subsidiary of The Linde Group, a multinational industrial gases and engineering company founded in Germany.
“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 PetGas and it underscores our long-standing and successful partnership,” Sanjiv Lamba, chief operating officer for Asia-Pacific and member of the executive board of Linde AG, said.
Linde’s first joint venture with PetGas, Industrial Gases Solutions Sdn Bhd, was an air gases trading company. Linde also supplies gases to other Petronas subsidiaries in Malaysia, including to its Kerteh and Gebeng petrochemical complexes.
Linde’s engineering division, which would design and construct PGS’ air separation units, also concluded the engineering, procurement, construction and commissioning contract with PGS. Linde’s technology in air separation design would offer high energy efficiency and operational reliability.