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Business

BASF And Petronas Study Specialty Chemical Plant

by Jean-François Tremblay
December 13, 2010 | A version of this story appeared in Volume 88, Issue 50

BASF and Malaysian oil refiner Petronas have signed a memorandum of understanding for a $1.3 billion complex that would produce a range of specialty chemicals in Malaysia. Over the coming year, they will jointly evaluate making nonionic surfactants, methanesulfonic acid, isononanol, and C4-based chemicals. Until now, BASF has produced isononanol and methanesulfonic acid in Europe only. The proposed venture would make use of raw materials supplied from an oil and gas hub that Petronas is building in Johor, in the south of the Malaysian peninsula. For the past decade, BASF and Petronas have jointly operated a major chemical complex in Kuantan, Malaysia. This joint venture, BASF Petronas Chemicals, is owned 60% by BASF and 40% by Petronas. It produces acrylic acid, oxo alcohols, butanediol and its derivatives, and phthalate-based plasticizers. Petronas has been developing its chemical business, notably with a recent initial public offering for a portion of it.

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