06 March 2012 03:34 [Source: ICIS news]
SINGAPORE (ICIS)--BASF and PETRONAS have agreed to proceed with a plan to develop new world-class specialty chemicals facilities in ?xml:namespace>
The companies will create a joint venture entity that will own, develop, construct and operate the proposed production facilities for isononanol, highly reactive polyisobutylene, non-ionic surfactants, methanesulfonic acid, as well as plants for precursor materials, they said in a joint statement.
BASF will own a 60% share in the joint venture, while PETRONAS will hold the remaining 40%, they said.
The facilities will be built at PETRONAS’ proposed refinery and petrochemical integrated development (RAPID) complex at Pengerang, Johor.
The investment size for this particular project was not disclosed, but it is part of the two companies’ previously announced Malaysian ringgit (M$) 4bn ($1.32bn) investment deal, BASF and PETRONAS said.
“The development of new specialty chemical products portfolio is an important component of PETRONAS’ plan to facilitate the development of our downstream petrochemical business,” said Wan Zulkiflee Wan Ariffin, PETRONAS’ executive vice president of downstream business, in the statement.
BASF and PETRONAS have an existing joint venture that owns an integrated petrochemical complex at the Gebeng industrial zone in Kuantan.
The two companies are currently doing a feasibility study on a possible expansion of their their propylene (C3) value chain in Kuantan, via building a new plant for superabsorbent polymers. They are also looking at expanding the capacity of their existing glacial acrylic acid unit.
($1 = M$3.02)
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