KUALA LUMPUR (Sept 19): Gases and engineering group Linde confirmed today that its Malaysian subsidiary is establishing a joint venture company with Petronas Gas Bhd to build two large air separation units and associated gas facilities in Pengerang, Johor.

Petronas Gas had announced the project a month ago, saying it will hold a 51% stake and Linde (M) Sdn Bhd the remaining 49%.

In a statement today, Linde said the €150 million (RM693 million) industrial air gas facility will produce gaseous oxygen and nitrogen to supply the needs of Petronas' Refinery and Petrochemicals Integrated Complex (RAPID) within the Pengerang Integrated Petroleum Complex.

The joint-venture company, Pengerang Gas Solution Sdn Bhd, has secured long-term agreements for the supply of oxygen and nitrogen to the complex, which includes an ethylene oxide and ethylene glycol plant, said Linde.

"It further strengthens our market position as the leading air gases supplier to the oil and gas and petrochemicals sector," said Linde AG chief executive officer Dr Wolfgang Buechele.

Meanwhile, the group's chief operating officer for Asia Pacific Sanjiv Lamba said, "Asia is a key growth market for The Linde Group and we are the market leader with over 50 years as the leading industrial air and medical gases supplier in Malaysia.

"This is Linde's second joint venture with Petronas Gas and it underscores our long-standing and successful partnership. The first joint venture, Industrial Gases Solutions Sdn Bhd, is an air gases trading company through which Linde supplies gases to Petronas' subsidiaries in Malaysia, including to its Kerteh and Gebeng Petrochemical Complexes," he added.

Petronas Gas shares closed today at RM21.50, down 40 sen or 1.83%, for a market value of RM42.58 billion.