Published On:April 23 2016
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Petronas Chemicals cancels $1.3 bn elastomers project in Malaysia.
Petronas Chemicals Group (PCG) has decided not to proceed with its proposed $ 1.3 billion elastomers project in Malaysia. In November 2015, Petronas Refinery and Petrochemical Corporation Sdn Bhd (PRPC), a wholly owned subsidiary of Petronas, disclosed plans to set up polymers, glycols and elastomers plants as part of the Refinery and Petrochemicals Integrated Development (RAPID) project in Johor Malaysia.
On April 14, 2016, PCG announced that it will not proceed with the proposed elastomers project in RAPID. “The decision was based on a review which was conducted on various key aspects of the elastomers project, including the product's market outlook and project return on investment. The project cancellation is expected to improve the overall returns of PCG's investments,” said the company in a press release.
As per the 3 November 2015 announcement, the initial total projected investment cost for the polymers, glycols and elastomers segments was approximately $ 3.9 billion with a combined capacity of 3.5 million metric tonnes per annum (MTPA). The cancellation of the elastomers project will result in capacity reduction of 0.35 million MTPA and projected investment cost by $ 1.3 billion.