2020 RPME Top 30 EPC Contractors: Linde Engineering

Published: 20 April 2020 - 3:30 a.m.
By: Martin Menachery

In December 2019, Sahara International Petrochemical Company (Sipchem) and Linde announced that they have signed initial terms to establish a strategic partnership for the supply of industrial gases, to meet growing demand from the refining and chemical industries in the Kingdom of Saudi Arabia. The primary focus of the partnership, which is expected to become operational in 2020, will be the connection via pipeline of existing hydrogen and syngas plants owned by the two parties in Jubail Industrial City, and the development of new production facilities to supply carbon monoxide, hydrogen, syngas and associated gases in industrial clusters in the kingdom. The partnership will leverage the strengths and footprints of both companies to offer best-in-class solutions primarily to the refining and chemical industries.

“Sipchem is eager to expand its operations to fulfil the growing demand from national refiners and petrochemical plants in the kingdom”, said Sipchem’s CEO, Saleh Bahamdan. “This partnership has the potential to blend stable returns with long-term supply commitments, offering us the opportunity to manage the typical cyclicality of the petrochemical industry.

“The combined onsite footprint and operation excellence of the two companies will create a compelling opportunity for us and our customers in Saudi Arabia,” said Linde’s executive vice president EMEA, Eduardo Menezes. “The partnership underpins Linde’s ongoing commitment to support the kingdom’s Vision 2030 to develop highly efficient and reliable industrial gases facilities.”

In October 2019, Linde announced that it started up two plants to supply oxygen and nitrogen to Taixing Jinyan Chemical Technology Co to support the production of ethylene oxide. The plants, with total combined production capacity of 29000 Nm3/h, will also supply gases to other customers in Taixing Economic Development Zone, ranked sixth amongst China's top chemical parks.

"The start-up of these two ASUs will help build network density in one of China's top chemicals and petrochemicals industrial parks in Eastern China", said Steven Fang, head of Linde Greater China. "This investment sets a foundation for future expansion in the Taixing Economic Development Zone."

Sun Xiao, chairman of Jurong Group, said: "We value Linde's experience in supply reliability, operational capabilities, and commitment to safety in on-site and pipeline gases supply and look forward to this being the start of a long and successful partnership."

On 31 October 2018, Linde announced the successful completion of the business combination between Praxair and Linde AG. The combined entity is a global industrial gas leader, generating 2017 pro forma revenues of approximately $27bn, with over 80,000 employees across more than 100 countries, serving over two million customers.

ADNOC has signed an MoU with Linde Group on 16 November 2017 to explore the expansion of nitrogen facilities in Ruwais, Abu Dhabi, to meet future industrial demand. This represents a continued commitment to joint business development by the two partners under the auspices of the joint venture, ADNOC Industrial Gases, which the two companies entered into 10 years ago. As a first step under the agreement, Linde will carry out a FEED study for new air separation units, which are intended to satisfy the expanding nitrogen requirements of ADNOC’s gas processing, petrochemicals and refining businesses.

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