Linde(NYSE: LIN; FWB: LIN) announced today it has signed 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. This will be the single largest sale of gas contract in the history of the newly merged Linde and of its legacy companies.
Linde will invest US$1.4 billion to expand 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 air separation plant, 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. Linde’s Engineering division will design and build the new facility. Construction is expected to start in the second half of 2019, with start-up anticipated in 2023.
Sanjiv Lamba, Executive Vice President, Linde Asia-Pacific, said, “Our Jurong Island facility has a long-standing history of processing refinery residue to produce carbon monoxide and hydrogen. This expansion will allow us to process these additional heavy residues efficiently while delivering a highly competitive and reliable source of hydrogen and synthesis gas to ExxonMobil and other customers. “We are proud to be a strategic partner for ExxonMobil’s Singapore integrated manufacturing complex. We appreciate ExxonMobil’s recognition of Linde’s engineering, operational capabilities and commitment to safe and sustainable solutions to help realize the full potential of their world scale investments,” Mr Lamba added.
Gan Seow Kee, Chairman & Managing Director, ExxonMobil Asia Pacific, said: “This agreement marks an important milestone in our partnership with Linde, and the integration will further enhance the operational capabilities of our respective facilities. We look forward to this being the start of a long and successful collaboration.”