Linde investing US$1.4b to expand Jurong Island gas complex

Singapore

GAS and engineering giant Linde has signed a long-term agreement with ExxonMobil Asia Pacific which will see it investing US$1.4 billion to expand its existing gasification complex at Jurong Island and integrating it with ExxonMobil's project to produce and supply additional hydrogen and synthesis gas.

The deal will support ExxonMobil's multibillion-dollar expansion project of its integrated manufacturing complex. It will also be the single-largest sale of gas contract in the history of the newly merged Linde and of its legacy companies.

The agreement will see Linde producing and supplying additional hydrogen and synthesis gas to ExxonMobil by upgrading the heavy residue feedstock from its new facilities, it said in a media release on Tuesday.

The project will include building and operating four additional gasifiers, a 1,200 metric tonne per day air separation plant, and Linde's proprietary downstream gas processing units and sulphur recovery plants, said Linde.

It 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 oversee the expansion, with construction expected to start in the second half of 2019 and operation start-up anticipated in 2023.

"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," said Sanjiv Lamba, executive vice president, Linde Asia-Pacific.

Gan Seow Kee, chairman and managing director, ExxonMobil Asia Pacific, added: "This agreement marks an important milestone in our partnership with Linde, and the integration will further enhance the operational capabilities of our respective facilities."

ExxonMobil had in April committed to a multibillion-dollar expansion of its Jurong Island integrated manufacturing complex that is expected to start operations in 2023, in line with the Linde expansion operation start date.

ExxonMobil's expanded facilities will enable it to convert fuel oil and other bottom-of-the-barrel crude products into higher-value lube base stocks and distillates. The project is expected to significantly increase site downstream and chemical earnings potential. The investment will raise the facility's capacity to produce an additional 20,000 barrels per day of its Group II base stock oil and 48,000 barrels per day of cleaner fuels with lower-sulphur content.