TAIF Group and LINDE AG have signed a Memorandum of Strategic Cooperation in the framework of the St. Petersburg International Economic Forum in the presence of Vladimir Putin, the President of the Russian Federation, Rustam Minnikhanov, the President of the Republic of Tatarstan, and Horst Seehofer, the Prime Minister of Bavaria (Federal Republic of Germany). The Memorandum, which defines the main areas of cooperation, was signed by Christian Bruch, Chief Operating Officer, LINDE AG, and Albert Shigabutdinov, General Director, TAIF PSC.

This Memorandum of Strategic Cooperation has been signed based on the results of a long-term mutually beneficial successful work and brings further cooperation between the companies to a whole new quality level, expands the scope of work and opens up prospects for the implementation of new large-scale projects.

As the first step in the implementation of the Memorandum of Strategic Cooperation, Nizhnekamskneftekhim PJSC and LINDE Engineering entered into a basic agreement aimed at implementation of related contracts on engineering, equipment supply, licensing, and services provided during the commissioning of the grassroots EP-600 plant - the 1st stage of the Olefin Complex with the capacity of 1,200 thousand tons per year for ethylene. This agreement was signed by Azat Bikmurzin, General Director, Nizhnekamskneftekhim PJSC, and John van der Velden, Managing Director, LINDE Engineering Division.

The construction of the Grassroots Olefins Complex of Nizhnekamskneftekhim PJSC will be carried out as part of the Strategy of the Development of the Chemical and Petrochemical Complex of the Russian Federation till 2030, which was adopted in 2016.

The project will be financed through a credit facility to the amount of approximately 85 per cent of the total contract price with coverage by European ECAs. 15 per cent of the overall contract price will be financed from Nizhnekamskneftekhim's own funds. The first stage of the Olefins Complex construction project will be completed by 2021. Implementing this project, the company almost repeats the experience of large-scale construction of Nizhnekamskneftekhim in the Soviet times and, in fact, its production capacity will double by 2025.

Albert Shigabutdinov, General Director of TAIF PSC, highlighted, ‘The implementation of the Olefins Complex construction project in Nizhnekamsk is one of the priority tasks for us. Over the past eight years, TAIF Group and Nizhnekamskneftekhim have put enormous effort into elaboration of the ideas expressed by the leadership of the Republic of Tatarstan and the Russian Federation as early as 10-20 years ago. The team of Nizhnekamskneftekhim has been working on this project with utmost dedication: a colossal work has been done on the selection of technologies, the proposals received from a dozen of well-known and highly reputable companies have been thoroughly studied, and, finally, the choice was made in favour of The LINDE Group. This is the best proposal for us. I am confident that our mutually beneficial cooperation will allow us to implement successfully this ambitious project and to bring the development of the petrochemical industry in the Republic of Tatarstan and the Russian Federation to a whole new level.’

In addition, LINDE AG has come up with the proposal to open LINDE's Training Centre at the premises of Kazan National Research Technological University in order to train and retrain specialists, with implementation of a dual training system together with TAIF at the premises of Kazanorgsintez PJSC and Nizhnekamskneftekhim PJSC. Cooperation in the field of engineering, researches and education implies the companies' collaboration on the establishment of an R&D center or a pilot units fleet. Besides, TAIF Group will consider the proposal of LINDE AG on the acquisition of a hydrogen plant and an air separation unit by the latter from TAIF-NK PSC with the purpose to produce and supply industrial gases to TAIF's enterprises on an outsourcing basis.

Established in 1878, The Linde Group consists of three divisions: Linde Gas, Linde Engineering (two main divisions) and Other Activities (GIST, a logistics company). The largest division, Linde Gas, consists of three segments, namely, Europe and the Middle East, Asia and Pacific, and Americas. In addition, Linde has established five global Remote Operation Centres (ROCs) that perform centralized control and operation of the activities in all the regions: Liquefied and Cylinder Gases ROC, Electronics ROC, Healthcare ROC, Plant Operation ROC, and Transportation ROC. The Linde Group also has established a project development function across the entire Group to ensure the best implementation of the business potential.

The Linde Group is in the forefront of technology development with the possibility of implementing EPC projects. This gives it an advantage over other gas companies. Linde's proprietary engineering solutions and own operating expertise are applied to design reliable plants. Symbiosis in both directions: Linde Gas is the largest customer of Linde Engineering.

Press centre, TAIF Group
Dmitry Nemanov,
Head of the Press centre, TAIF PSC
Tel. + 7 (843) 277-94-48



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