Linde has signed a long-term agreement with ExxonMobil Asia Pacific to support the latest multi-billion dollar expansion of the company’s integrated manufacturing complex in Singapore.
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.
This will be the single largest sale of gas contract in the history of the newly merged Linde and of its legacy companies.
Exxon’s expansion project, which is expected to come online in 2023, would convert fuel oil and other residual crude products into higher-value lube base stocks and distillates to help meet stricter emissions rules.
The International Maritime Organisation (IMO) is introducing new rules on marine fuels from 2020, limiting the sulphur content to 0.5 percent from 3.5 percent, to curb pollution from ships.
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.
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.”