News | July 9, 2021

Malaysia's Pengerang Eyes Polymers Unit Start-Ups

Malaysia's Pengerang petrochemical complex is expected by market participants to attempt a start-up of some of its downstream polymers units from this year's late third quarter.

It is expected to start up its 350,000 t/yr linear low-density polyethylene (LLDPE) unit at the end of August. Its two polypropylene (PP) units with 450,000 t/yr of PP capacity each are expected to start up from September onwards in phases. Its 400,000 t/yr high-density polyethylene (HDPE) unit is expected to start up in the fourth quarter.

But its downstream polymers units may take some time to reach commercial operations, given the lengthy shutdown of the refinery and petrochemicals complex at Pengerang in southern Malaysia's Johor province since a fire in March 2020.

Malaysia's state-owned Petronas was last expected to buy 1,000t each of ethylene and propylene supplies for early August delivery to Pengerang. Pengerang Refining and Petrochemicals is a 50:50 joint venture between Petronas and Saudi Arabia's state-controlled Saudi Aramco. Petronas operates two other polyethylene plants in Kerteh, Malaysia.

Source: Argus