SARAWAK Petchem Sdn Bhd has picked Petronas Chemicals Marketing (Labuan) Ltd to market its methanol products.

The two companies today signed a sale and purchase agreement in Kuching for the marketing arm of Petronas Chemicals Group Bhd (PCG), to market Petchem’s methanol products for 20 years with an option for extension.

Sarawak Chief Minister Abang Johari Openg witnessed the signing of the document at the lobby of the state assembly building.

The Petchem methanol plant in Bintulu has an annual production capacity of 1.7 million metric tonnes per annum (mtpa).

The plant is expected to come on stream in 2022  with 140 million standard cubic feet per day of natural gas feed stock from Petronas LNG.

Petchem, established in June last year, is the first Sarawak state-owned company that produces methanol.

Petronas executive vice-president (downstream business) and PCG chairman Arif Mahmood said Petchem’s 1.7 million mtpa of methanol on top of PCG’s current portfolio of 2.4 million mtpa would give PCG a competitive edge in key markets including China, Korea, Taiwan, Japan and India.

“It will enable us to fulfil the rising demand from Asia-Pacific where the growing middle class is contributing to a higher consumption of petrochemical products. This is a significant part of Petronas’ continuous commitment to support the development of the petrochemical industry in Sarawak,” Arif said.

PCG is the largest methanol producer in the Asia-Pacific region and the fourth largest in the world.

Petchem chairman Abdul Aziz Husain said today’s tie-up marks a “very significant milestone and achievement for Sarawak in its journey to pursue the realisation and involvement in the petrochemical downstream of oil and gas in Bintulu”.

“This historic event is not only to signify the beginning of the collaboration between Sarawak Petchem and PCML but also to provide challenges for us to deliver the world class methanol plant safely, timely and optimum cost with required quality,” he said.

He said the venture was expected to bring about potential economic spin-offs from several outsourced services, which would generate more business and job opportunities for the local community. – December 14, 2018.

Petronas Chemicals Marketing (Labuan) Ltd CEO Shamsairi Ibrahim (right) and Sarawak Petchem chairman Abdul Aziz Hussein exchange documents at the signing of a sale and purchase agreement between the two companies, .witnessed by Sarawak Chief Minister Abang Johari Openg (in baju Melayu) and Petronas and Petchem senior executives. – The Malaysian Insight file pic, December 14, 2018.