By Pierre Bertrand

Linde PLC's engineering division said Wednesday that it signed an agreement to build a synthesis gas plant in China for German chemical peer BASF SE.

Linde Engineering will work on the new plant in Zhanjiang as part of a consortium with East China Engineering Science & Technology Co., it said.

Linde will act as consortium leader, including on the provision of basic engineering and key equipment, Linde Engineering said.

The consortium partner will be responsible for the detailed design and construction, it added.

Synthesis gas is a mixture of hydrogen and carbon monoxide, produced after converting hydrocarbons with steam. It is used in the production of oxo alcohols, methanol or synthetic fuel, according to Linde's website.

BASF is building a new integrated facility in Zhanjiang. When operational by 2030, the up to $10 billion complex will be the chemical company's third-largest.

Linde Engineering didn't disclose financial details.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

(END) Dow Jones Newswires

February 08, 2023 11:15 ET (16:15 GMT)

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