Petronas plans growth by capacity expansion, selective acquisitions

10-Sep-10

Petronas Chemicals Group Bhd (PCGB), the soon-to-be-listed petrochemicals arm of Petroliam Nasional Bhd (Petronas), plans to grow by expansion of production capacity and selective acquisitions in the mid-to-long term. PCGB, one of the largest petrochemicals producer in Southeast Asia, said in its draft prospectus, "In the medium to longer term, we will look to expand our product portfolio and production capacity - including through the development of new production plants using gas and alternate types of feedstock - as well as potentially synergistic and prudent acquisitions to pursue growth. Opportunities outside Malaysia could also be considered.” PCGB is currently considering expanding its operations in Sabah and Sarawak to develop a world-scale greenfield ammonia and urea plant to take advantage of the natural gas feedstock available in that region. PCGB also expects to get more closely involved with a greenfield project that Petronas is currently evaluating – to develop an integrated refinery and petrochemicals complex in Peninsular Malaysia, with international partners.