BASF, Petronas Mull Deeper Ties

BASF and Malaysian oil refiner Petronas have signed a memorandum of understanding for a $1.3 billion complex in Malaysia that would produce a range of specialty chemicals. The new plant would complement a petrochemical complex the partners have jointly operated in Kuantan, Malaysia, for the past decade.

Their 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. Over the coming year, the firms will jointly evaluate the possibility of expanding their product range to non-ionic surfactants, methanesulfonic acid, iso-nonanol and other C4-based chemicals.

The proposed venture would continue a strengthening of Petronas' chemicals business. In August, it agreed to pay BP $363 million for the British firm's stake in their chemical joint ventures (C&EN, Sept. 6, page 30). Petronas raised more than $4 billion in the spin off of its chemicals business as Petronas Chemicals in September. At the time, Petronas said it would use some of the proceeds to build new plants.