PetChem to set up RM1.9bil isononanol plant

Workers cleaning the Petronas logo at the petrol station near the Penchala Link. AZMAN GHANI / The Star

KUALA LUMPUR: Petronas Chemicals Group Bhd (PetChem) plans to invest US$442mil (RM1.95bil) to set up an isononanol (INA) plant within the Pengerang Integrated Complex in Johor.

In a filing with Bursa Malaysia, PetChem said it had approved the final investment decision for the plant, which would come on-stream by the second half of 2019 and have a production capacity of 250,000 tonnes per year.

INA is an oxo-alcohol which is mainly used for the production of diisononyl phthalate, a high molecular weight phthalate plasticiser (used to increase plasticity and flexibility) that is widely used in industrial applications such as automotive, wires and cables, floorings, buildings and construction.

“The investment will mark PetChem’s entry into a niche business with high entry barrier which is predominantly controlled and commercialised by technology owners for its own captive use,” the company said.

The major feedstock for the INA plant is Raffinate-2 which will be supplied from Petronas Refinery and Petrochemical Corp’s cracker complex while the ancillary feedstock supply, mainly hydrogen and oxogas, will be sourced from the integrated refinery and cracker complex respectively.