PETRONAS CHEMICALS TO BUILD FERTILISER PLANT IN SIPITANG SABAH

Petronas Chemicals to build fertiliser plant in Sabah

KUALA LUMPUR June 30, 2011: Petronas Chemicals Group Bhd (PCG) has proposed to build a new world-scale fertiliser plant in Sipitang, Sabah, at an estimated cost of US$1.5 billion

In a statement today, PCG said the construction of the plant, which would have urea production capacity of 1.2 million metric tons per annum (mmtpa), was expected to start in the second quarter of 2012 with commissioning targeted in 2015.

It said the project was conditional upon reaching agreement with the Sabah state government on land related matters.

It would boost PCG’s total production capacity to 2.6 mmtpa, it said.

Currently, PCG operates two urea plants comprising a 750,000 mtpa urea plant in Bintulu, Sarawak and a 683,000 mtpa urea plant in Gurun, Kedah.

PCG chairman, Datuk Wan Zulkiflee Wan Ariffin, said it was part of PCG’s strategy to grow its fertiliser business as Asia-Pacific was a key market.

“We are in an advantageous position as we have close proximity to the growth markets in the region,” he said.

President and chief executive officer Dr Abd Hapiz Abdullah said PCG would potentially be the second largest urea producer in South-East Asia, as the new Sabah fertiliser plant would almost double the current capacity.

The project will be undertaken by a special-purpose vehicle, Styrene Monomer (M) Sdn Bhd, which will be renamed Petronas Chemicals Fertiliser Sabah Sdn Bhd