Industrial gases giant Linde has signed a long-term deal to supply gas to ExxonMobil Asia Pacific in Singapore. The agreement, which is the single largest contract for selling gas in the history of the newly merged Linde and its legacy companies, will support ExxonMobil’s expansion on Jurong Island.

The multinational energy and chemicals group is investing multi-billions of dollars to upgrade and expand its product slate to higher-value lube base stocks and distillates.

Linde will invest $1.4 billion to expand its existing gasification complex on the island, integrating it with ExxonMobil’s project. The gasification complex will produce and supply hydrogen and synthesis gas (syngas) to ExxonMobil by upgrading the heavy residue feedstock from its new facilities.

The expansion will entail building four additional gasifiers, a 396,000 t/y air separation plant as well as Linde’s proprietary downstream gas processing units and sulfur recovery plants.

Linde will also invest in a dedicated set of pipelines for transferring feedstocks and products between facilities. Once completed, Linde will also supply hydrogen, carbon monoxide and syngas to other customers on Jurong Island. Overall, the project will quadruple Linde’s current capacity.

Linde’s engineering division will design and build the complex. Construction is expected to begin in the second half of 2019 with start-up anticipated in 2023.

“Our Jurong Island facility has a long-standing history of processing refinery residue to produce carbon monoxide and hydrogen,” said Sanjiv Lamba, executive vice president of Linde Asia-Pacific. “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.”

In March this year, Linde and leading US gases player Praxair merged to become the world’s largest producer of industrial gases, surpassing France’s Air Liquide.