Linde's joint venture with PETRONAS to invest EUR 150 million in a new industrial air gas facility at Malaysia's largest integrated petroleum complex
Monday, Sep 19, 2016
Linde Malaysia Sdn Bhd, a subsidiary of The Linde Group, one of the leading gases and engineering companies in the world, today announced that it has established a joint venture company with PETRONAS Gas Berhad (PGB) to build a state-of-the-art industrial air gas facility that will produce gaseous oxygen and nitrogen to supply the needs of PETRONAS' world-scale Refinery and Petrochemicals Integrated Complex (RAPID), within the Pengerang Integrated Petroleum Complex (PIPC) in southern Malaysia.

Linde and PETRONAS' joint venture company, Pengerang Gas Solution Sdn Bhd (PGS), has also secured long-term agreements for the supply of oxygen and nitrogen to the world-scale refinery and petrochemical complex which includes an ethylene oxide/ethylene glycol plant. PGS will build two large air separation units and associated gas facilities resulting in a total investment of EUR 150 million.

Dr Wolfgang Buechele, Chief Executive Officer of Linde AG, said, "Linde is a technology company with a successful integrated business model. We are in a unique position to offer a one-stop service to our customers covering both the delivery of turnkey petrochemical plants and enabling gas supplies. This major on-site project enables us to leverage the technical and execution expertise of our Engineering Division and the operational know-how of our Gases Division in very close cooperation. It further strengthens our market position as the leading air gases supplier to the oil and gas and petrochemicals sector."

Sanjiv Lamba, Chief Operating Officer for Asia Pacific and Member of the Executive Board of Linde AG, said, "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. We are proud to continue to create value for our customers through our world-class technologies and innovative solutions."

Linde's first joint venture with PGB, Industrial Gases Solutions Sdn Bhd, is an air gases trading company. Linde today also supplies gases to PETRONAS' subsidiaries in Malaysia, including to its Kerteh and Gebeng Petrochemical Complexes.

Linde's Engineering Division, which will design and construct PGS' air separation units (ASUs), also concluded the engineering, procurement, construction and commissioning (EPCC) contract with PGS. Linde's world-leading technology in air separation design offers high energy efficiency and operational reliability.

About the Refinery and Petrochemical Integrated Complex (RAPID)

RAPID is part of PETRONAS' largest investment in Malaysia to date - the Pengerang Integrated Complex (PIC) development - which forms part of the Johor State's PIPC. When completed in early 2019, RAPID will include a 300,000 barrels-per-day refinery, a naphtha steam cracker and an integrated petrochemical complex producing ethylene, propylene, butadiene and various other derivatives. These highly specialised chemical products are building block materials for most manufacturing supply chains of consumer products such as plastics, polyester, synthetic rubber, styrofoam and household cleaning products. Refineries also require large quantities of gases to control various processes including equipment performance, conversion efficiencies, wastewater treatment and cleaning.

About Linde Malaysia

Linde has been operating in Malaysia since 1960 and is the leading industrial and medical gases supplier in the country.

With more than 20 sales centres and 60 plants nationwide, it specialises in providing total gas solutions to a variety of industries. We manufacture and distribute industrial, specialty and medical gases, and provide a range of related services including the installation of gas equipment, pipelines and associated engineering services. In addition, we supply packaged chemicals, and welding and consumables products.

With more than 50 years of experience in the gas industry in Malaysia, Linde Malaysia combines local knowledge with global expertise and resources in the areas of technology, research & development, gas applications, engineering and best operating practices.

About The Linde Group

In the 2015 financial year, The Linde Group generated revenue of EUR 17.944 bn, making it one of the leading gases and engineering companies in the world, with approximately 65,000 employees working in more than 100 countries worldwide. The strategy of The Linde Group is geared towards long-term profitable growth and focuses on the expansion of its international business with forward-looking products and services. Linde acts responsibly towards its shareholders, business partners, employees, society and the environment in every one of its business areas, regions and locations across the globe. The company is committed to technologies and products that unite the goals of customer value and sustainable development.


PETRONAS is a Fortune Global 500® company wholly-owned by the Government of Malaysia. Together with its subsidiaries and associated companies, PETRONAS is a fully integrated entity with global operations in a wide spectrum of the oil and gas value chain with strategic interests in more than 50 countries. Committed to ensuring business sustainability, PETRONAS strives to responsibly manage natural resources in a way that contributes to the well-being of the people and nations where it operates.

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