PRefChem Initiates Production Halt at Malaysian Cracker for Maintenance

PRefChem, a strategic collaboration between Malaysia's preeminent petrochemical entity, Petronas, and the state-owned oil company Saudi Aramco of Saudi Arabia, initiated a temporary production shutdown at its Pengerang cracker in southern Johor, Malaysia, on November 17. This operational hiatus was triggered by a technical breakdown, compelling the cracker, with an annual production capacity of 1.2 million tonnes of ethylene and 609 thousand tonnes of propylene, to remain non-operational for an estimated one-week duration.

This recent development follows a previous incident when Pengerang Refining and Petrochemical (PRefChem) successfully resumed production at the Pengerang cracking plant in early August, overcoming challenges posed by a technical breakdown. The plant, endowed with a capacity of 1.2 million tonnes of ethylene and 609 thousand tonnes of propylene per year, underwent a shutdown for maintenance on July 21. Ethylene and propylene, pivotal components in the production of polyethylene (PE) and polypropylene (PP), constitute the primary raw materials processed by the Pengerang cracker.

CPC Corporation, a prominent petrochemical manufacturer based in Taiwan, recommenced operations at Cracker No. 6 in Kaohsiung on November 3 following a scheduled maintenance period. CPC Corporation's cracking unit No. 3 in Kaohsiung boasts an annual capacity of 720,370 tonnes of ethylene and 20,000 tonnes of propylene. The maintenance activities for Cracker No. 6 commenced in September, underscoring the meticulous planning and execution required in the petrochemical industry.

PRefChem stands as a testament to the collaborative efforts between two of the world's largest national oil companies – Malaysia's state-owned Petroliam Nasional Berhad (Petronas) and Saudi Arabia's state-owned Saudi Aramco. Their equal interests are reflected in two joint ventures, namely Pengerang Refining Company Sdn. Bhd. (formerly known as PRPC Refinery & Cracker Sdn Bhd) and Pengerang Petrochemical Company Sdn. Bhd. This collaboration underscores the global nature of the petrochemical industry and the importance of cross-border partnerships in fostering growth and resilience.

As PRefChem adeptly manages the temporary production halt at its Pengerang cracker, the indispensable role of ethylene and propylene in the production of polyethylene (PE) and polypropylene (PP) remains paramount. These developments, intricately intertwined with the multifaceted dynamics of the global petrochemical landscape, underscore the critical significance of scheduled maintenance and prompt technical responses. The petrochemical industry, characterized by its complexity and interdependence, relies on proactive measures to ensure the uninterrupted operation of essential industrial facilities.

The recent production shutdown at PRefChem's Pengerang cracker serves as a poignant reminder of the challenges inherent in the petrochemical sector and the necessity for meticulous planning and swift responses to technical issues. As global players like PRefChem navigate these complexities, the industry continues to evolve, driven by collaborative efforts, technological advancements, and a commitment to sustainability and operational excellence.