Engineering News

Petronas, Evonik Team Up to Produce Specialty Chemicals
January 25, 2013

KUALA LUMPUR: Petronas and Evonik Industries AG have signed a letter of intent (LOI) to jointly develop the production facilities of specialty chemicals within Petronas' Refinery & Petrochemical Integrated Development (Rapid) project in Pengerang, Johor. The LOI was signed on January 16.

Under the LOI, the two parties will form a partnership to jointly own, develop, construct and operate facilities for the production of hydrogen peroxide, C4 co-monomer and oxo-products within Rapid.

In a joint statement, the companies said the plants are expected to have the capacity to produce 250,000 tonnes of hydrogen peroxide, 220,000 tonnes of isononanol (INA) and 110,000 tonnes of 1-butene annually.

These projects are expected to come on stream in 2016.

At the LOI signing, Petronas was represented by its chief operating officer and executive vice president of downstream business Datuk Wan Zulkiflee Wan Ariffin, while Evonik was represented by executive board member Dr Dahai Yu.

"The project is set to mark another milestone in our growth strategy in the Asian market," said Yu.

Evonik is one of the world's largest producers of hydrogen peroxide and C4-based products with production facilities in Europe, North America, South America, New Zealand, Asia, South Africa and Indonesia.

Wan Zulkiflee said Evonik is a strategic partner in the development of Rapid towards achieving the project's final investment decision.

Hydrogen peroxide is used as a bleaching agent in the paper and textile industries and for eco-friendly oxidation and disinfection.

The oxo-alcohol INA is a precursor of the plasticiser DINP, which is used in soft PVC production.

The most important markets and end applications are films, wallpapers, and floorings, in addition to cables and automotive applications.

1-butene is used as a co-monomer for the production of plastic polyethylene.

The most important growth regions for 1-butene are China, South-East Asia, the Middle East, and Europe, the two companies said.

The LOI signed with Evonik is for a host of specialty chemicals, some of which are generally similar to those that had been previously intended to be produced by the proposed venture with BASF, said a Petronas official.

Source: New Straits Times (Malaysia)

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