Union Carbide and PETRONAS Mark Major Milestone in Building World-Scale Chemical Complex in Malaysia

Strategic Insights -

Union Carbide Corporation and PETRONAS, the national oil company of Malaysia, have made significant progress in constructing a world-scale, integrated chemical complex in Kerteh, peninsular Malaysia. The three joint ventures have awarded two major contracts to Linde AG of Germany and Kvaerner Process for the construction of the 600,000 metric tons-per-year ethane/propane cracker and project management consultancy services, respectively. Completion of the complex is scheduled for late 2001, and it will be operated under the name OPTIMAL Group, with headquarters in Kuala Lumpur.

Key Takeaways:

  • The OPTIMAL complex will be one of the largest of its kind in the world, with a capacity to produce 600,000 metric tons of ethane/propane per year.
  • The complex will include a range of production units, including ethylene oxide, ethylene glycol, ethanolamines, and TRITON and TERGITOL surfactants, with capacities of 385,000 tons, 360,000 tons, 75,000 tons, and 85,000 tons, respectively.
  • The complex will operate with the most advanced and sophisticated technologies available in the chemical process industry, including Union Carbide's Meteor Process and LP Oxo Process.
  • The partners emphasized the importance of environmental compliance and safety performance, and the venture will be one of the chief proponents in Malaysia of the chemical industry's Responsible Care(R) initiative.
  • Site preparation work has been underway since June, and the partners are evaluating bids for contracts to build some of the key downstream derivatives facilities.
  • The complex will have terminals, storage facilities, and other petrochemical plants close at hand, and will benefit from PETRONAS's competitive feedstock supply and efficient transportation, storage, and shipping facilities.
  • Union Carbide Chairman William H. Joyce praised PETRONAS as a "superbly managed enterprise" and predicted that the strategic alliance will mature and strengthen over time through the inevitable business cycles.

Statistics:

  • 600,000 metric tons-per-year ethane/propane cracker production capacity
  • 385,000 tons ethylene oxide production capacity
  • 360,000 tons ethylene glycol production capacity
  • 75,000 tons ethanolamines production capacity
  • 85,000 tons TRITON and TERGITOL surfactants production capacity
  • 10,000 tons UCARSOL gas-treating solvents production capacity
  • 140,000 tons butanol production capacity
  • 160,000 tons butanol derivatives production capacity
  • Construction completion scheduled for late 2001

Sources:

  • PRNewswire (Nov. 8)