As part of its forward strategy until 2020 (see also Plasteurope.com of 02.12.2011), BASF (Ludwigshafen / Germany; www.basf.com) in early March signed a “Heads of Agreement” with Malay oil giant Petronas (Kuala Lumpur; www.petronas.com) outlining the next steps for the USD 1 bn expansion of their existing partnership in Malaysia, to be implemented between 2015-2018. The agreement was signed by BASF vice board chairman Martin Brudermüller and Petronas’ Downstream business executive vice president Datuk Wan Zulkiflee Wan Ariffin, who said it was part of Petronas’ “plan to facilitate the sustainable development of our downstream petrochemical business.”

Part of the investment is to go towards the two groups’ existing joint venture BASF Petronas Chemicals (Kuantan / Malaysia), which produces acrylic monomers, oxo products and also operates a 100,000 t/y butanediol (BDO) plant. Petronas and BASF said they were mulling an expansion of the C3 value chain by adding a new superabsorbent polymers plant, as well as raising capacity at the site’s existing glacial acrylic acid unit.

The agreement also foresees the establishment of a new BASF-Petronas 60:40 joint venture in the Malay group’s proposed "Refinery & Petrochemical Integrated Development" (RAPID) complex in Pengerang, Johor. Specifically, the two players undertook to jointly own, develop, build and operate new facilities for the production of plasticiser feedstock isononanol as well as polyisobutylene, non-ionic surfactants, methanesulfonic acid and precursor materials at the site.