Reports: Malaysia’s PrefChem production plans unaffected by recent fire

Pengerang Refining And Petrochemical (PRefChem) remains on track to commence commercial production at its newly constructed plant in Johor, Malaysia by the fourth quarter of this year, according to an official statement from the company. 

On 12 April 2019, an explosion occurred at the complex due to a gas leak at the Residue Desulphurization unit, however, the incident does not affect the operation at the downstream petrochemical plants.

An official from the company added that at the moment, the plant completion is at about 98% and the utilization rate remains low. “Typically, we will not commit to full production because we would like to see how the plants perform, especially in the first year of production,” said to reporters, Petronas Chemical Group’s Chairman Datuk Md Arif Mahmood.

“Next year, if the plants run well as we commissioned and started, we will ramp the production rate up. Hopefully, we can get to full production,” added the Chairman. 

PrefChem is a 50%-50% joint venture between Petronas and Saudi Aramco. The complex houses a 3 million tons/year naphtha cracker, 900,000 tons/year PP unit, 400,000 tons/year HDPE unit. The company also owns a C6-based metallocene PE plant with a capacity of 350,000 tons/year.

According to sources close to the company, prime grade PP cargoes might become available in the market by late October while trial run for HDPE would only be conducted by the year-end.