Petronas And BASF Expand Partnership In Malaysia

KUALA LUMPUR, March 6 (Bernama) -- Petronas and BASF (world's leading chemical company) have taken the next step forward to realise the announced RM4 billion (US$1.32 billion) investment that will expand their partnership in Malaysia. The partnership entails projects at their existing ventures in Kuantan and at a new site within Petronas' proposed Refinery and Petrochemical Integrated Development (RAPID) complex in Pengerang, Johor (south Malaysia). These projects are to be implemented between 2015 and 2018. Petronas and BASF entered into a "Heads of Agreement" (HOA) on Monday to develop the RAPID Complex in Pengerang. The HOA was signed by BASF SE Board of Executive Directors vice-chairman Dr Martin Brudermueller (second from right) and Petronas Downstream Business executive vice-president Wan Zulkiflee Wan Ariffin (second from left). Under the HOA terms, the partners agreed to form a new entity (BASF 60 per cent; Petronas 40 per cent) to jointly own, develop, build and operate production facilities for isnonanol, highly reactive polyisobutylene, non-ionic surfactants, methanesulfonic acid and plants for precursor materials. The world-scale facilities will become an integral part of Petronas' RAPID project. Dr Brudermuller said the new development in Pengerang and expansion of the "Verbund" site in Kuantan state (north Malaysia) would improve specialty chemicals supply to customers in the Asia-Pacific region. Wan Zulkiflee said the production of new specialty chemical products portfolio was an important component in Petronas' plan to facilitate sustainable development in the downstream petrochemical business. He said chemicals produced at the new facility would directly contribute to sustainable development of the Asia-Pacific region, particularly Asean. Also present were Executive Project Director Project RAPID, Petronas Wan Yusoff Wan Hamat (left), President & CEO Petronas Shamsul Azhar Abbas (centre) and President Asia Pacific, BASF East Asia Regional Headquarters Ltd. Saori Dubourg (right). (photoBERNAMA) MALAYSIA