09 May 2013 03:26 [Source: ICIS news]
TAIPEI (ICIS)--Malaysia is likely to become a net importer of polyolefins in 2013 following the capacity reductions that occurred last year, the Malaysian Petrochemicals Association (MPA) said on Thursday.
The country is expected to import 705,000 tonnes of polyolefins in 2013, up from 649,000 tonnes in 2012. Exports, meanwhile, is projected to fall to 652,000 tonnes this year from 772,000 tonnes in 2012.
PETRONAS subsidiary Polypropylene Malaysia mothballed its 80,000 tonnes/year polypropylene (PP) plant in Kuantan at the end of December 2012, while Lotte Chemical Titan is reducing its polyolefins capacity from 480,000 tonnes/year to 400,000 tonnes/year.
Lotte Chemical Titan will have the only active PP capacity in Malaysia until PETRONAS brings its new refinery and petrochemical integrated development (RAPID) project on line, according to the MPA.
PETRONAS' new RAPID project will house a 300,000 bbl/day refinery, a naphtha cracker with a combined olefins capacity of 3m tonnes/year as well as other petrochemical and polymer units.Malaysia was a net exporter of polyolefin products for the last four years ending in 2012. The major export destinations were China, including Hong Kong, as well countries in southeast Asia and south Asia.
Asia Petrochemical Industry Conference (APIC) is being held in Taipei on 9-10 May.
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