PETRONAS and BASF looking at Malaysian chemicals project
BASF and PETRONAS today signed a memorandum of understanding (MoU) to undertake a joint feasibility study to produce specialty chemicals in Malaysia, a move that would extend the two parties’ existing business collaboration in the country. The partners are considering a potential joint investment sum of approximately €1 billion.
Under the terms of the MoU, the two parties will evaluate the technical, commercial and economic viability of jointly owning and operating world-scale facilities for the production of specialty chemicals including non-ionic surfactants, methanesulfonic acid, iso-nonanol as well as other C4-based specialty chemical products. The final scope of the investments will be determined following the outcome of the joint feasibility study which is targeted to be completed in 2011. The MoU was signed at the PETRONAS headquarters in Kuala Lumpur.
The proposed move by PETRONAS and BASF will build on their strategic partnership in the country, established in 1997. The partnership, via BASF PETRONAS Chemicals Sdn Bhd (of which BASF owns 60% shares), currently own and operate an integrated complex in Gebeng, Pahang, Kuantan that produces acrylic monomers, oxo products and butanediol. As for the subsequent phase of the collaboration, PETRONAS Chemicals Group and BASF will jointly evaluate the outcome of the joint feasibility study and will adopt it as part of their strategic growth plans, if technically and commercially viable.
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