Petronas mulls cracker at Kerteh

Company Strategy, Malaysia, Olefins, Polyolefins, Projects

By Malini Hariharan

There is finally some movement at Petronas. After last month’s joint announcement with BASF on a study for a Euro1bn investment in speciality chemicals, news has emerged that the Malaysian major is also exploring the feasibility of a new petrochemical complex at Kerteh.

The complex would have a 1m tonnes/year ethane cracker and downstream polymer plants, reports ICIS news.

It would include a polyethylene (PE) plant and a polypropylene (PP) unit, said a source close to the company. A second source said the plants would have a capacity of at least 400,000 tonnes/year.

Petronas currently operates two crackers at Kerteh with a total capacity of 1m tonnes/year.

Pic source: Petronas

The sources did not disclose more details about the project and Petronas was also not available for an official comment.

But the information is interesting as Petronas had disclosed in the prospectus issued for its subsidiary Petronas Chemical that it was studying a petrochemical project downstream of a refinery in peninsular Malaysia.

But with gas said to be available on the east coast it makes sense to first examine the feasibility of an ethane cracker


Bayer Material Science Outlines Global Strategy


Patrick Thomas Source of picture: Bayer Material Science   By John Richards...

Learn more

Fears Rise Over China Long-term China Demand Dip


By John Richardson ANXIETY seems to be growing in the chemical industry over Chi...

Learn more
More posts
Long term downcycle will transform global petrochemicals, creating new Winners and Losers

By John Richardson THIS IS not a normal downcycle. Please get over that idea however many people, bo...

Asian PE and PP margins at lowest levels in at least five years and will go lower……

By John Richardson NOT since at least the beginning of 2014 have Northeast and Southeast Asian polye...

Asian polypropylene market heads for major 2020 downturn

By John Richardson THE ASIAN polypropylene (PP) market hasn’t been as bad as the region’s polyet...

China new vehicle sales: A long term decline and what this means for petrochemicals

By John Richardson THE MAINSTREAM view is that there is nothing fundamental about the decline in new...

Asian copolymer polyproplyene used as a sink for growing oversupply of ethylene

By John Richardson A SURE sign that the Asian ethylene-to-polyethylene (PE) markets are distressed c...

Asian polyethylene shutdowns? Once again, good luck with that idea

By John Richardson I was new to the game as I had only been analysing the petrochemicals business fo...

Europe to become much more self-sufficient in polyethylene because of sustainability

Yes, I know I promised to focus on Asia and its cracker-to-PE industry today and how the region will...

Environmental taxes on US polyethylene shipments to the EU seem inevitable

By John Richardson IT ALL seemed to make perfect sense at the time. Feedstock and financing were inc...


Market Intelligence

ICIS provides market intelligence that help businesses in the energy, petrochemical and fertilizer industries.

Learn more


Across the globe, ICIS consultants provide detailed analysis and forecasting for the petrochemical, energy and fertilizer markets.

Learn more

Specialist Services

Find out more about how our specialist consulting services, events, conferences and training courses can help your teams.

Learn more

ICIS Insight

From our news service to our thought-leadership content, ICIS experts bring you the latest news and insight, when you need it.

Learn more