Ir Dr Colin Wong (right) exchanging contract document with CEO of Tecnimont S.p.A, Mr Pierroberto Folgiero.

KUALA LUMPUR,  21 February 2017 – PETRONAS today expanded its petrochemical business portfolio and added value to the development of Pengerang Integrated Complex (PIC) with the signing of the Engineering, Procurement, Construction and Commissioning (EPCC) contract for the complex’s Flexible High Density Polyethylene (Flexi HDPE) plant.

The EPCC contract was signed between PETRONAS and the consortium of Tecnimont S.p.A, China Huanqiu Contracting and Engineering Co. Ltd, TECNIMONTHQC S.c.a.r.l and TecnimontHQC Sdn Bhd.

The consortium received the Letter of Award (LOA) from PRPC Polymers Sdn Bhd, a subsidiary of PETRONAS Chemicals Group (PCG) on 10 November 2016. The plant will be completed and achieve Ready for Start-Up (RFSU) by May 2019.

Ir Dr Colin Wong (left) exchanging contract document with CEO of HQC Group, Mdm Wang Xinge.


In his remarks at the signing ceremony, PETRONAS Senior Vice President and Director of PRPC Polymers Sdn Bhd, Ir Dr Colin Wong Hee Huing commended the efforts by all parties in ensuring that the agreement is finalised on schedule.

“The signing of this contract affirms that petrochemicals remains a key component in PETRONAS’ business growth where we intend to be a major regional player, in providing a wider portfolio of petrochemical products and solutions to our customers,” said Dr Colin.

“It also signifies PETRONAS’ firm commitment to move forward to grow our downstream business with the PIC development which is poised for successful start-up in the first quarter of 2019.”

The signing ceremony was held at the Malaysian Petroleum Club at the PETRONAS Twin Towers.

Also present were the Ambassador of Italy to Malaysia, Mr Mario Sammartino; Commercial Counsellor of the Embassy of The People’s Republic of China to Malaysia, Mdm Shi Ziming; PETRONAS Vice President and Managing Director/Chief Executive Officer of PETRONAS Chemicals Group Berhad, Datuk Sazali Hamzah; and Project Director of Petrochemical, Datuk Nur Iskandar A Samad.

The Flexi HDPE plant is the first of its kind in PETRONAS and Malaysia, utilising the Hostalen Advanced Cascade Process (HACP) Slurry Technology for Multimodal HDPE licensed by Lyondellbasell (LYB).

Upon completion, the plant which has a capacity of 400,000 metric tonnes per annum (mtpa) will produce a range of multimodal HDPE products, complementing PETRONAS’ polyethylene portfolio.

The Flexi HDPE will be produced in the form of pallets, which enables custom-made production of very-high-molecular-weight polymers desirable for end-products, such as pressure pipes for drinking water, gas, industrial and general purposes, as well as household containers and bottles, drums, caps and closures, liners for food packaging, among others.

Flexi HDPE allows film grades with lesser thickness and pipe grades with excellent stress crack resistance.

PCG is PETRONAS’ public listed company for all its petrochemical business, including the ownership of all petrochemical plants in the PIC.

PCG will also market all petrochemical products by PIC once it is in operation.

With a reliable track record, strong business performance, good network reach and customer intimacy, this is another step for PCG to strengthen its position as a market leader in the region.