From left: Petronas Chemicals chairman Datuk Md Arif Mahmood, managing director and CEO Datuk Sazali Hamzah and chief financial officer Rashidah Alias with the annual report.
KUALA LUMPUR: Petronas Chemicals Group Bhd
will continue to assess further opportunities beyond 2020 in downstream derivatives and specialty chemicals at Pengerang, Kertih, Gebeng and East Malaysia.
Its managing director/CEO Datuk Sazali Hamzah said on Wednesday this was part of the group's long-term business positioning and sustainability.
In terms of its business activities, 2018 would be similar to 2017, he said in a statement issued after its AGM.
Sazali pointed out a global economic recovery indicated good prospects for Petronas Chemicals as its business was very much driven by increasing consumer demand, especially in the Asean region.
“Coupled with the recently imposed tariff against US imports in chemicals as well as the new capacities coming on stream, Petronas Chemicals is well-positioned to meet the additional demand.
“The completion of Pengerang Integrated Complex (PIC), as well as the current plants that we have, will provide a lot more opportunities to grow in the area of chemicals, derivatives and specialty chemicals,” it said.
He said moving forward, Petronas Chemicals was set to stay at the forefront of the industry with the ability, resilience and determination to overcome challenges.
Speaking to the media on Petronas Chemicals’ growth strategy, Sazali also reported on the progress of PChem's three key projects.
1. Integrated Aroma Ingredients Complex
Project Update: The start-up of the new Integrated Aroma Ingredients Complex has been initiated in phases and is currently conducted in a step-wise approach.
Background: The Integrated Aroma Ingredients Complex in Gebeng, Pahang, is a joint venture project undertaken together with BASF through its associate company, BASF Petronas Chemicals Sdn Bhd.
The complex produces aroma ingredients namely citral, citronellol and L-menthol, to meet the high demand from the rapidly growing fragrance and flavour industries.
The project, the first to use BASF’s technology outside Europe, marks Petronas Chemicals’ foray into the highly attractive niche and specialty play, which are less affected by cyclicality compared to commodity chemicals.
Aroma ingredients are sold to the flavour and fragrance industry, mainly in home and personal care products and in the food industry as well as pharmaceutical applications.
2. Highly Reactive Polyisobutene (HR-PIB) Project
Project Update: HR-PIB has successfully come on-stream in January 2018.
Background: Petronas Chemicals had sanctioned the development and construction of the new world-scale HR-PIB plant at its associate company, BASF Petronas Chemicals Sdn Bhd, to add further value to its existing business at PETRONAS Chemicals MTBE Sdn Bhd in Gebeng, Pahang.
Product functions include as intermediate product for the manufacturing of high-performance fuel and lubricant additives.
3. Petrochemical Project in PIC
Project Update: As at March 2018, the petrochemical project in the Pengerang Integrated Complex (PIC) development by Petronas, is progressing well on schedule at 74% project completion while the overall PIC project is progressing at around 87 per cent overall project progress.
On March 28, 2018, PCG concluded its shareholder agreement with ARAMCO for the divestment of its 50 per cent interest in PRPC Polymers Sdn Bhd.
Background: The Petrochemical Projects in PIC, which are scheduled to be operationalised in 2019, are significant growth projects for PCG to broaden its product portfolio and further diversify into derivatives, specialty chemicals and solutions, while expanding PCG’s existing production capacity.
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