Petronas Chemicals unit, Sarawak Petchem ink methanol products deal
KUALA LUMPUR: Petronas Chemicals Group Bhd’s marketing arm Petronas Chemicals Marketing (Labuan) Ltd (PCML) has signed a deal with Sarawak Petchem Sdn Bhd to market methanol products from the latter’s plant.
Under the agreement, PCML will handle the marketing for Sarawak Petchem’s methanol products from its plant in Bintulu for 20 years, with an option for further extension.
The plant is expected to come on stream in 2022 and will receive 140 million standard cubic feet per day of natural gas feedstock from Petroliam Nasional Bhd (Petronas).
Sarawak Petchem said it selected PCML as its partner due to the market stature of its parent company, Petronas Chemicals, which is the fourth largest methanol producer in the world, with an annual production capacity of 2.4 million tonnes per annum.
“This historic event not only signifies the start of the collaboration between Sarawak Petchem and PCML but challenges us to deliver a world-class methanol plant safely, on time and on cost, ” said Sarawak Petchem chairman Tan Sri Datuk Amar Abdul Aziz.
Petronas executive vice-president and chief executive officer of downstream business Datuk Md Arif Mahmood said through the partnership, Petronas Chemicals was able to strengthen the supply of methanol to its customers.
“It will enable us to fulfil the rising demand from Asia Pacific, especially in Southeast Asia, China, South Korea, Taiwan, Japan and India, where the growing middle-class is contributing to a higher consumption of petrochemical products.
“This is a significant part of Petronas’ continuous commitment to support the development of the petrochemical industry in Sarawak,” he said.
He said the venture was expected to bring about potential economic spin-offs from several outsourced services, which would generate more business opportunities and jobs for the local community.