PIC to contribute 10-15% to PetChem's revenue in FY22

Datuk Md Arif Mahmood

KUALA LUMPUR: Petronas Chemicals Group Bhd (PetChem) expects its Pengerang Integrated Complex, which will be operational by the second half of 2021, to contribute 10 to 15 per cent to its revenue in the financial year ending Dec 31, 2022 (FY22).

Chairman Datuk Md Arif Mahmood said the group would ramp up the operations of PIC to full capacity next year and add 1.8 million tonnes of chemicals to its portfolio.

"It depends on how the price looks like (but) it will possibly contribute 10 to 15 per cent to the overall revenue,” he told a virtual media conference after PetChem’s annual general meeting today.

The refinery and petrochemical plant in Pengerang, Johor, is a joint venture between Petronas and Saudi Aramco.

"Typically when we start a complex, we will not be running it on full capacity. I think this year for the chemical plant, (the production) would be less than one million tonnes, at about 0.7 million tonnes. It will not be significant (as a contributor) for 2021," said Md Arif.

He said for this year, PetChem was unlikely to match the production volume of 10.7 million tonnes per annum it achieved last year due to the number of turnarounds in 2021.

"We have a slightly heavy turnaround this year involving five of our facilities. To meet the same production volume of 10.7 million tonnes would be a stretch for us but it is something we strive for. The plan for this year would be (to achieve) close to that number," said Md Arif.

Chief financial officer Mohd Azli Ishak said PetChem was currently evaluating more than 10 projects, of which two to three final investment decisions (FIDs) would be announced this year.

"We will continue to evaluate it, and release it in different stages. Once we achieve the FIDs, we will announce them," he said, adding that PetChem was proactively looking at opportunities to grow in specialty chemicals via mergers and acquisitions.

In 2020, PetChem announced three FIDs, namely a silicone blending facility in Gebeng, Pahang; expansion of a Da Vinci Group plant in the Netherlands; and partnership for liquid chemical distribution in Indonesia. - Bernama

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