MOSCOW (MRC) -- Sahara International Petrochemical Co (Sipchem) and industrial gas firm Linde have signed an exclusive agreement to set up a joint venture for developing industrial gas projects and networks in Saudi Arabia, said Gasworld.
Under a 50/50 joint venture, Linde and Sipchem said they intend to connect existing hydrogen and syngas plants owned and operated by the two parties in Jubail Industrial City.
"The main focus will be on the development of new production facilities in order to supply carbon monoxide, hydrogen, syngas, ammonia and associated gases alongside efficient solutions for the decarbonisation of downstream production in industrial clusters in the Kingdom," a statement on the Saudi stock exchange said.
"The Strategic Joint Venture is expected to open the door to substantial investment opportunities of approximately USD500m over the next five years subject to the economic viability," it continued.
The equal joint venture aims to build an industrial gases network in Jubail Industrial City by connecting via pipeline the existing hydrogen and syngas plants owned and operated by the two firms, Sipchem said to the Saudi bourse, Tadawul.
As MRC informed earlier, Linde announced it has signed a memorandum of understanding (MoU) with Snam to jointly develop clean hydrogen projects and related infrastructure in Europe. Snam, a world leading energy infrastructure company, owns and operates the largest natural gas transmission network in Europe, having approximately 42,000 kilometers of pipeline across the continent.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's ScanPlast report, Russia's estimated polyethylene (PE) consumption totalled 1,990,280 tonnes in the first eleven months of 2020, up by 1% year on year. Only high density polyethylene (HDPE) shipments increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 090,900 tonnes in the first eleven months of 2020 (calculated using the formula: production, minus exports, plus imports, excluding producers' inventories as of 1 January, 2020). Supply of exclusively PP random copolymer increased.
Linde is a global leader in the production, processing, storage and distribution of hydrogen. It has the largest liquid hydrogen capacity and distribution system in the world. The company also operates the world"s first high-purity hydrogen storage cavern coupled with an unrivaled pipeline network of circa 1,000 kilometers to reliably supply its customers. Linde has installed close to 200 hydrogen fueling stations and 80 hydrogen electrolysis plants worldwide. The company offers the latest electrolysis technology through its newly formed joint venture ITM Linde Electrolysis GmbH.
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