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Strong petrochemicals demand drives project starts in Malaysia

Published by , Senior Editor
Hydrocarbon Engineering,

Malaysia is likely to witness start of operations of 31 petrochemicals projects from 2021 to 2025 driven by robust demand for petrochemicals, according to GlobalData.

GlobalData’s ‘Global Petrochemicals New-Build and Expansion Projects Outlook, 2021-2025’ report reveals that out of 31 projects expected to commence operations in Malaysia, polyethylene projects would be at three, followed by polypropylene and benzene with two each.

Bhargavi Gandham, Oil & Gas Analyst at GlobalData, comments: “Petrochemicals consumption is on the rise in Malaysia leading to supply-demand mismatch. This is leading to growth in investments and establishments of joint ventures to boost petrochemicals capacity in the country.”

Among the upcoming polyethylene projects, the Petronas Pengerang Polyethylene Plant 2 leads with a production capacity of 0.40 million tpy. It is followed by Petronas Pengerang Polyethylene Plant (Swing), with a capacity of 0.35 million tpy. Both the projects are in the commissioning stage.

GlobalData also notes that the two upcoming polypropylene projects, the Petronas Pengerang Polypropylene Plant 1 and the Petronas Pengerang Polypropylene Plant 2, have production capacity of 0.45 million tpy each. Both of these projects are also in the commissioning stage.

Of the two upcoming benzene projects, the Pengerang Energy Complex Pengerang Benzene Plant would lead with a capacity of 0.59 million tpy. The project has received the plan approval and is expected to start operations in 2024. It is followed by PETRONAS Pengerang Benzene Plant with a capacity of 0.17 million tpy.

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