Petronas targets Pengerang LLDPE production

Malaysia's state-owned Petronas is expected to start production of C6 linear low-density polyethylene (LLDPE) from September, in a sign the producer is accelerating its polymer operations at the Pengerang complex.

Polymer production from Pengerang in southern Malaysia is expected to hit the market early year but Petronas is currently carrying out test runs for its units.

The joint venture between Petronas and Saudi Arabia's state-owned Saudi Aramco will be able to produce 900,000 t/yr of polypropylene, 400,000 t/yr of high-density polyethylene and 350,000 t/yr of LLDPE.

Petronas will be entering the polymer market during a likely period of oversupply with new capacity scheduled to come on stream in South Korea, Oman and US in the coming year.

LLDPE prices in China, a key consuming market, were at $830-850/t cfr China this week.