Linde brings gas and hydrogen innovations to Mexico

Mexico

Hugo Villarreal-Salas, vice-president for energy and engineering in North Latam at Linde Mexico, talks to The Energy Year about the company's role in enhancing Mexico's oil, gas and hydrogen production, and its competitive advantages in the market. Linde is a leading industrial gases and engineering company.

How does Linde contribute to the ramping up of Mexico’s oil and gas production?
We recognise significant potential in Mexico’s hydrocarbons sector. Our nitrogen plant, the largest globally, is situated near the prolific Campeche Bay and produces a substantial amount of nitrogen gas annually. Additionally, we operate several liquid nitrogen plants in Coatzacoalcos.
This nitrogen is injected at high pressure into reservoirs for enhanced oil recovery (EOR). Our subsidiary, Nitropet, provides nitrogen and carbon dioxide injection services using fully autonomous equipment designed for high-flow and high-pressure applications in the oil sector. We uphold the highest safety standards in our operations.
Nitropet collaborates with renowned companies on well repair and maintenance. Chemicals are added to nitrogen before injection to enhance EOR performance. We have a contract with Pemex to supply both onshore and offshore services. While Pemex contracts us for nitrogen supply, other service providers supply the necessary chemicals. Onshore, we are active in fields such as Quesqui and Sini. Offshore, we work in Cantarell, supplying nitrogen via our plant in Ciudad del Carmen.
Pemex aims to significantly increase production. This strategy involves stimulating depleted wells through gas lift systems and nitrogen injection to ensure continuous production. Nitrogen is also used for pipeline cleaning services. Pemex is currently cleaning polyducts, for which we supply the nitrogen.
We have supported Pemex in sweeping and inerting pipelines, recently completing a start-up project in Guaymas. In our energy business, a portion of our work involves industrial pipes, while the majority focuses on nitrogen injection, repair and maintenance of onshore and offshore wells.

What footprint and competitive advantages does the company have in Mexico?
We are the world’s largest industrial engineering and industrial gases company. Our extensive expertise in productivity, technology and engineering positions us as global and national leaders in the chemicals industry. Mexico is a key market for us, where we have made significant investments in recent years to implement advanced technologies for producing industrial, medical and speciality gases.
Mexico is home to a substantial number of our clients and employees. We operate numerous production plants, a filling station and several distribution centres. Our products include oxygen, nitrogen and argon. From these basic gases, we produce oxygen, nitrogen, CO2 and hydrogen.
Some products, such as CO2, serve industries like refrigeration, chemicals and metal-mechanics. We cater to a wide range of industries, including manufacturing, automotive, energy, electronics and petrochemicals. Our services range from specialty gas supply to process support and production.
Our competitive edge lies in our extensive investment in gas application technologies. We have a dedicated department that develops tailored applications for various industries, including steel, food, chemicals, welding and energy. These innovations have improved production efficiency and reduced costs. We are also leaders in developing hydrogen technologies and invest heavily in safety systems, ensuring our clients operate securely.

In what ways is Linde contributing to advancing the country’s hydrogen production?
Hydrogen development has gained momentum in Mexico in recent years, particularly with grey hydrogen projects. We are pioneers in this field, operating a hydrogen plant in several key areas in Mexico. We also provide hydrogen to Mexico’s major glassmakers. Currently, we operate several grey hydrogen plants primarily serving the metal-mechanics industry, where hydrogen is essential for achieving a reducing atmosphere during galvanisation.
We are now preparing to establish our first green hydrogen plant in Mexico. With extensive experience in hydrogen projects worldwide, we manage the entire process – from design and engineering to construction and operation. We are eager to apply our expertise in hydrogen to support its growth in Mexico, a market with significant potential poised for rapid development.

What industries do you see as pillars or as having potential growth for Linde in Mexico?
Energy is one of the most significant sectors for our products and services. The energy business accounts for a substantial portion of Linde’s sales in the Latam region. The North Latam region plays a crucial role within our global portfolio. The energy sector has experienced steady growth in recent years. With the government’s focus on increasing production from mature fields, we see substantial opportunities through Nitropet, which reported significant revenue growth compared to the previous year.
The medical sector is also a vital and stable part of our business. During the pandemic, Linde’s strategic investments enabled us to meet the surge in oxygen demand. This segment has since stabilised but remains essential to our operations.

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