Petronas taps existing feedstock after Pengerang blast

Malaysia's state-owned Petronas is likely to draw on its existing supplies of propylene and ethylene to continue running downstream polymer units after a fire hit its new petrochemical facility in Pengerang.

An explosion and fire occurred at the Pengerang integrated complex on 15 March.

Petronas may also increase its spot purchases of propylene and ethylene to meet any short-term needs.

The Pengerang plant can produce 900,000 t/yr of polypropylene (PP), 400,000 t/yr of high-density polyethylene (HDPE) and 350,000 t/yr of linear low-density polyethylene (LLDPE).

Petronas is maintaining operations at its PP line and is expected to restart its LLDPE unit by the end of this week after technical issues last week.

But Petronas may delay the start-up of its HDPE line as it resolves issues related to the recent fire.

There are currently no notices of shipment delays for unbranded LLDPE and PP deals that were concluded in February with southeast Asian buyers.

The complex in Pengerang, southern Malaysia is a joint venture between Petronas and Saudi Arabia's state-owned Saudi Aramco.

Malaysia today implemented widespread restrictions on travel and economic activity in an attempt to curb the coronavirus outbreak. All "non-essential" businesses have been ordered to close and movement of people in and out of the country has been halted. Oil and gas operations are excluded from the shutdowns, although the impact on petrochemical plants could not be established.

By Muhamad Fadhil and Yee Ying Ang

source: Argus Media