Petroleum Products
including Petrochemicals
The petroleum products and petrochemicals sector are a prominent and well-established industry in Malaysia, with the nation serving as a significant exporter of various petrochemical goods. These products play a vital role in everyday items like plastics, fertilisers, and apparel. Despite challenges posed by the COVID-19 pandemic, slow demand growth, and capacity expansion, the global petrochemical market was projected to grow to $950.1 billion by 2028, with Malaysia’s industry expected to achieve a higher growth rate of 5-6%, surpassing the country’s GDP.
In response to global trends, industry players are adapting their strategies. Decarbonisation efforts are reducing emissions from stationary combustion, and the focus is on electrification using clean energy for processes like fractional distillation. Investments in energy efficiency and innovative technologies, such as green hydrogen and carbon capture, storage, and utilisation (CCSU), are encouraged. Green hydrogen, derived from renewable sources, is becoming more feasible due to decreasing costs. Additionally, ‘turquoise’ hydrogen holds promise.
Carbon capture and utilisation technologies are being applied throughout the energy value chain, with captured carbon dioxide being stored in depleted offshore reservoirs and then converted into valuable products. Advanced chemical recycling initiatives in Malaysia are transforming plastic waste into recycled resin using pyrolysis, contributing to sustainability efforts.
The Ministry of Investment, Trade and Industry (MITI), in collaboration with the Malaysian Investment Development Authority (MIDA), is leading the way in setting up essential policies and support to attract new green investments into the industry in the years ahead.
Hengyuan Refining Company Berhad
Port Dickson, Negeri Sembilan
PETRONAS Penapisan (Terengganu) Sdn. Bhd.
Kertih, Terengganu
Malaysian Refining Company Sdn. Bhd.
Tangga Batu & Sg. Udang, Melaka
Petron Malaysia Refining & Marketing Berhad
Port Dickson, Negeri Sembilan
Kemaman Bitumen Company Sdn. Bhd.
Kemaman, Terengganu
Pengerang Refining Company Sdn. Bhd.
Pengerang, Johor
Lotte Chemical Titan (M) Sdn. Bhd.
Pasir Gudang, Johor
(2 Naphtha Crackers)
Pengerang Refining Company
Sdn. Bhd. Pengerang, Johor
PETRONAS Chemicals Ethylene Sdn. Bhd.
Kertih, Terengganu
PETRONAS Chemicals Olefins Sdn. Bhd.
Kertih, Terengganu
There are 4 Liquefied Natural Gas (LNG) Facilities in Malaysia:-
1. Malaysia LNG Sdn Bhd (MLNG Satu)
2. Malaysian LNG Dua Sdn Bhd (MLNG Dua)
3. Malaysia LNG Tiga Sdn Bhd (MLNG Tiga)
4. PETRONAS LNG 9 Sdn Bhd (PL9SB)
There are 2 floating LNGs in Malaysia:-
1. PETRONAS Floating LNG 1 (PFLNG Satu)
2. PETRONAS Floating LNG 2 (PFLNG Dua)