PRefChem Plans to Restart Malaysian Butadiene Plant in November

PRefChem, a prominent collaborative effort between the Malaysian petrochemical powerhouse, Petronas, and the state-owned oil giant, Saudi Aramco from Saudi Arabia, is on the verge of restarting its Pengerang butadiene plant in November after a recent unplanned maintenance shutdown. This strategic facility, boasting an annual production capacity of 185 thousand tons of butadiene, found itself temporarily idled in early October due to unexpected technical complications.

The Pengerang site, where this butadiene plant is located, is a complex of substantial magnitude and significance. In addition to the butadiene production unit, it encompasses a cracking unit with an impressive annual capacity of 1.2 million tonnes of ethylene and 609 thousand tonnes of propylene. Furthermore, within this extensive industrial landscape, there is a refinery geared for processing 300 barrels daily. Notably, the site hosts a state-of-the-art cracking unit that successfully commenced commercial production of ethylene and propylene on September 13, 2019. In addition to these, there are various petrochemical plants, collectively possessing a remarkable production capacity of 7.7 million tons per annum.

The recent episode of an unscheduled maintenance shutdown is not the first time that PRefChem has had to grapple with operational challenges. A notable setback occurred when a fire erupted at the Pengerang complex in March 2020, leading to a suspension of operations at the butadiene plant. During that period, which unfolded on March 15-16, 2020, the company was compelled to halt butadiene production. Simultaneously, the neighboring cracking unit, with its substantial annual production capacity of 1.2 million tons of ethylene and 609 thousand tons of propylene, was also temporarily taken offline.

PRefChem stands as a strategic partnership, effectively uniting two of the most formidable national oil companies on the global stage. The collaborating entities are Malaysia's state-owned oil company, Petroliam Nasional Berhad (Petronas), and Saudi Aramco, a behemoth in the world of state-owned oil entities. These two corporate giants jointly own and operate two integral joint ventures known as Pengerang Refining Company Sdn. Bhd. (formerly recognized as PRPC Refinery & Cracker Sdn Bhd) and Pengerang Petrochemical Company Sdn. Bhd.

The impending resumption of operations at the Pengerang butadiene plant in November represents a pivotal stride for PRefChem, affirming its unwavering commitment to overcoming operational hurdles and ensuring a reliable supply of essential petrochemical products for a spectrum of industries. The collaboration between Petronas and Saudi Aramco in the form of this joint venture underscores PRefChem's stature as a prominent player in the global petrochemical arena. This partnership leverages the strengths and resources of two prominent national oil companies, serving as a catalyst for progress and innovation within the petrochemical industry.