Petronas blast to delay Pengerang polymer output

The explosion at state-owned Malaysian firm Petronas' Pengerang Integrated Complex (PIC) late last week is likely to delay on-specification polymer production, with major traders now expecting operations to hit full or near-full capacity in the third quarter or early fourth quarter this year.

Petronas is likely to continue test runs and may purchase ethylene and propylene from the spot market to support its phased polymer start-up.

The Pengerang facility, a joint venture between Petronas and Saudi Arabia's state-owned Saudi Aramco, will be able to produce 900,000 t/yr of polypropylene and 750,000 t/yr of polyethylene.

The explosion on 12 April hit the refinery's 140,000 b/d atmospheric residue desulphurisation unit.

Petronas had been ramping up test runs of polymer units at the new petrochemical facility in Pengerang, southern Malaysia, in the run-up to the Islamic fasting month of Ramadan in early May.

Ramadan is typically a lull period for production at state-owned companies in the country as employees work reduced hours.