aSahara 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, the Saudi producer said.

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 in a filing to the Saudi bourse, Tadawul on 15 December.

“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 decarbonization of downstream production in industrial clusters in the Kingdom,” it said.

The joint venture is expected to support substantial investment opportunities of around $500m over the next five years, subject to their economic viability, the company added.

The contract between the two companies has a 20-year duration.