KUALA LUMPUR: Petronas Chemicals Group Bhd’s marketing arm Petronas Chemicals Marketing (Labuan) Ltd (PCML) has signed an agreement with Sarawak Petchem Sdn Bhd, to market methanol product from the latter’s plant.
Under the agreement, PCML will be the marketing arm for Sarawak Petchem’s methanol product from Sarawak Methanol Plant in Bintulu for 20 years with an option for further extension.
Established in June 2017, Sarawak Petchem will be the first Sarawak state government-owned company that produces methanol, with an annual capacity of 1.7 million tonnes per annum (mtpa).
The plant is expected to come on stream in 2022 and will receive 140 million standard cubic feet per day (MMSCFD) of natural gas feedstock from Petroliam Nasional Bhd (Petronas).
Sarawak Petchem has selected PCML as its partner, given the strong market stature of its parent company, Petronas Chemicals, which is the largest methanol producer in Asia Pacific, and the fourth largest in the world with an annual production capacity of 2.4 million mtpa.
Sarawak Petchem chairman Tan Sri Datuk Amar Abdul Aziz said the agreement marks a very significant milestone and achievement for Sarawak in its journey to pursue the realisation and involvement on the petrochemical - downstream of oil and gas in Bintulu, Sarawak.
“This historic event is not only to signify the beginning of the collaboration between Sarawak Petchem and PCML but also to provide challenges for us to deliver the world class methanol plant safely, timely and optimum cost with required quality,” he said.
Petronas downstream business executive vice president PCG Datuk Md Arif Mahmood said through the partnership, Petronas Chemicals was able to strengthen the supply of methanol to its customers.
Md Arif is also Petronas Chemicals chairman.
“It will enable us to fulfil the rising demand from Asia Pacific, especially in Southeast Asia, China, Korea, Taiwan, Japan and India, where the growing middle class is contributing to a higher consumption of petrochemical products.
“This is a significant part of Petronas’ continuous commitment to support the development of the petrochemical industry in Sarawak,” he said.
He said the venture is expected to bring about potential economic spin-offs from several outsourced services, which will generate more business and job opportunities for the local community.