Linde India has received a Letter of Acceptance from Indian Oil Corporation (IOCL) to establish an Air Separation Unit (ASU) within the Panipat Refinery Complex. The company intends to finance the capital expenditure using its own funds and internal accruals.
“The company has been awarded a ‘Letter of Acceptance’ dated 22 August 2023 by Indian Oil Corporation Limited (IOCL) in connection with the job-work contract for setting-up of Air Separation Unit (ASU) on a site licensed by IOCL within its Panipat Refinery Complex for production and supply of Instrument Air, Plant Air and Cryogenic Nitrogen to IOCL Panipat Refinery Expansion Project (P25),” Linde India said in an exchange filing.
Linde India will complete construction and conduct performance tests on the ASU. Afterward, Linde India will enter into agreements with IOCL to operate and maintain the facility for 20 years from the first delivery date.
The company actively manufactures industrial and medical gases and constructs cryogenic and non-cryogenic air separation plants. Linde India dominates the domestic industrial gas industry with over 75 years of presence and a diverse product portfolio encompassing industrial, medical, compressed, and special gases. Furthermore, the company possesses strong brand equity and the capability to offer comprehensive solutions to customers in the tonnage segment.
Last year, the company approved investments for a new ASU in Dahej. The company also received investment approval for another ASU in Ludhiana, Punjab. This move aims to expand into the under-served secondary steel, metfab, and pharma markets. Linde India stated in its annual report that both investments, totaling approximately 500 tpd, will reach commercialization within FY 2023.
The company’s strong footprint in the steel sector secures orders to establish ASUs at ESL Steel Limited in Bokaro and Jindal Stainless Limited in Kalinganagar. These orders are expected to solidify the company’s position in East India, totaling approximately 2,200 tpd. The company is also enhancing its presence in the semiconductor segment by constructing a high-purity Nitrous Oxide facility at its existing Hyderabad plant.