KUALA LUMPUR (Feb 21): Petroliam Nasional Bhd (Petronas) has awarded an engineering, procurement, construction and commissioning (EPCC) contract to a consortium for the Pengerang Integrated Complex (PIC)’s flexible high-density polyethylene (Flexi HDPE) plant.

In a statement today, Petronas said the consortium comprises Tecnimont S.p.A, China Huanqiu Contracting and Engineering Co Ltd, TecnimontHQC S.c.a.r.l and TecnimontHQC Sdn Bhd.

The letter of award was granted by PRPC Polymers Sdn Bhd, a subsidiary of Petronas Chemicals Group Bhd, on Nov 10, 2016. The plant is expected to be completed by May 2019.

“The signing of this contract affirms that petrochemicals remains a key component in PETRONAS’ business growth, where[by] we intend to be a major regional player, in providing a wider portfolio of petrochemical products and solutions to our customers.

“It also signifies Petronas’ firm commitment to move forward to grow our downstream business with the PIC development, which is poised for successful start-up in the first quarter of 2019,” said Petronas senior vice president and director of PRPC Polymers Sdn Bhd, Dr Colin Wong Hee Huing.

The Flexi HDPE plant will be the first of its kind in Malaysia, with a total capacity of 400,000 metric tonnes per annum.

The plant will produce a range of multimodal HDPE products in the form of pallets which can be used for end-products, such as pressure pipes and household containers.