KUALA LUMPUR: State-controlled oil major Petroliam Nasional Bhd (Petronas) and German chemical giant BASF are forming a joint venture to own, develop, construct and operate production facilities for isononanol, highly reactive polyisobutylene, non-ionic surfactants, methanesulfonic acid, and plants for precursor materials, in Refinery & Petrochemical Integrated Development (Rapid) complex in Pengerang, Johor.

In a statement yesterday, Petronas said the JV will involve BASF controlling 60% equity interest while the oil major holds the remaining 40%, with the projects being implemented between 2015 and 2018.

Petronas said these plans were part of its RM4 billion joint investments with BASF announced at end-March last year.

These facilities, would become an integral part of its Rapid project, it added.

The two companies had entered into a “heads of agreement” on Monday to develop the project in Pengerang, with BASF represented by its vice-chairman of the board of executive directors Dr Martin Brudermueller and Petronas executive vice-president of downstream business, Datuk Wan Zulkiflee Wan Ariffin, representing the oil major.  

“The development of a new specialty chemical products portfolio is an important component of Petronas’ plan to facilitate the sustainable development of our downstream petrochemical business.

“This complements our integrated plan to become a key player in the region as well as to spur domestic investment in the oil, gas and petrochemical industries,” Wan Zulkiflee said.

Through its subsidiary Petronas Chemicals Group Bhd, Petronas and BASF are also making progress with plans to expand the operations of BASF Petronas Chemicals Sdn Bhd in Kuantan, a similar 60:40 JV between the two.  

The partners plan to expand their C3 value chain with a new plant for super absorbent polymers and to expand the production capacity of their existing glacial acrylic acid unit.

Founded in 1997, BASF Petronas Chemicals currently operates an integrated complex with acrylic monomers, oxo products and butanediol production facilities at the Gebeng Industrial Zone in Pahang.

This article appeared in The Edge Financial Daily, March 7, 2012.