Petrochemicals for Malaysia

Abstract

A number of companies both foreign and local have expressed considerable interest to establish petrochemical operations in Malaysia. Proposals for petrochemical complex to produce polyolefins and aromatics from crude oil and naphtha has been announced; and joint-ventures to set up polypropylene and MTBE plants have been formed. Interests in polyethylene have also been expressed provided there is a stable supply of ethylene.

Malaysia does not have a large enough domestic demand for petrochemicals to support a world scale economic size complex due to a small population and a relatively undeveloped downstream plastic and fibre fabrication industries. Petronas have embarked on the Peninsular Gas Utilization Project landing gas frcm offshore, processing and distributing it to the South and to the West Coast. Larcje quantities of ethane, propane and butane will be produced as a by-product of processing the gas. The prospects are bright for a successful development of the Petrochemical Industry in Malaysia.