Petronas, Evonik to co-develop specialty chemicals production facilities
Evonik Industries and Petronas have entered into a Letter of Intent (LOI) to co-develop specialty chemicals manufacturing plants within Petronas's Refinery and Petrochemical Integrated Development (RAPID) project in Pengerang, Johor, Malaysia.
As part of the LOI, both the companies will form a partnership to jointly own, develop, construct and operate plants to manufacture hydrogen peroxide, C4 co-monomer and oxo-products within the RAPID project.
Expected to come on stream in 2016, the projects are likely to manufacture 250,000 metric tonnes of hydrogen peroxide, 220,000 metric tonnes of isononanol and 110,000 metric tonnes of 1-butene per year.
Evonik executive board member Dr. Dahai Yu said the entire project is set to mark another milestone in the company's growth strategy in the Asian market.
"This is why we're seeking for a strong long-term strategic partner like Petronas," Yu added.
The collaboration is expected to consolidate Petronas's position as a key downstream petrochemical player in the region.
Petronas Downstream Business chief operating officer and executive vice president Datuk Wan Zulkiflee Wan Ariffin said: "Evonik's excellent track record and more than 100 years of experience in the industry, backed by its proven technical, engineering and sales support, makes them another strategic partner in the development of RAPID towards achieving the project's final investment decision."
The oxo-alcohol is used for production of soft PVC and1-butene is used in the plastic polyethylene production, while hydrogen peroxide is used as a bleaching agent.