Linde and Shell in Joint Cracker Construction Pact

Linde and Shell Global Solutions have signed an Enterprise Framework Agreement (EFA) to jointly build ethane crackers worldwide.

The ten-year pact, covering licensing, engineering, procurement and construction services as well as supply of proprietary equipment, carries an option to be extended.

As a first step in implementing the cooperation, Shell has awarded Linde a contract for the licensing and basic engineering design package for a potential world-scale ethane cracker. No location was announced for the planned facility.

The German gases and engineering group described the contract as a "renewed opportunity" to build upon its long-standing relationship with Shell, saying it is committed to leveraging its ethylene technology and project execution knowhow to help expand Shell's global petrochemical market activity.

Linde added that it intends to deliver major cost savings for ethane cracking units from standardization and repeatability effects.