The importance of

petrochemical industry and its

growth in Malaysia
 Chemicals made from petroleum (crude oil)
and natural gas.

 Petroleum is basically hydrocarbon. i.e.

made up of hydrogen and carbon
atoms.

 Petrochemicals are manufactured by either

rearranging these hydrogen and carbon
combination or making direct use of one the
constituents or using their properties to
help in producing other product.
There are over 4,000 products classified as
"petrochemicals".

Petrochemicals are organic and inorganic

compounds and mixtures that include but are
not limited to organic chemicals, plastics
and resins, synthetic fibers, organic dyes,
detergents, surface active agents, carbon
black, and ammonia.

Since petroleum is a mixture of

hydrocarbons, the chemicals made from it are
nearly all organic chemicals.
 Characteristic of HC @ ambient T & P,

5- LIQ >18 SO
1-4 C GAS C
17C L
ORGANIC CHEMICALS
INORGANIC CHEMICALS
Downstream -
PETROCHEMICALS
QUIZ 1

List down the importance of Petrochemical in daily life

by watching this video.

Petrochemicals 101 -

http://www.youtube.com/watch?v=KVOf2DbdJV
Q
 Petrochemicals
From Raw Materials To Daily Life
The petrochemical Products
industry has an important role in the modern
life through supplying the basic needs of our daily lives.
The growth of petrochemical industry
in Malaysia
It is an important sector in Malaysia with
investments totaling RM56.9 billion as at the end of 2007.

From being an importer of petrochemicals,

Malaysia is today an exporter of major petrochemical
products.

A wide range of petrochemicals are produced in Malaysia

Malaysian Petrochemicals
Association
MPA is an industry association representing
the petrochemical industry of Malaysia. MPA
is formed in 1997 and is registered with the
Registrar of Societies in Malaysia.
At present, members of MPA include
companies engaging in the manufacture and
trading of petrochemicals and plastic
resins, as well as companies providing
services required by the petrochemical
industry.
M’sia Oil & Gas
Trends
The rapid growth of the industry is mainly attributed
to

a) the availability of oil and gas as feedstock

b) a well-developed infrastructure

c) a strong base of supporting services

d) the country's cost competitiveness

e) Malaysia's strategic location within ASEAN

f)its close proximity to major markets in the Asia

Pacific Region.
Malaysia has the world's 13th largest natural gas
reserves and 24th largest crude oil reserves. In
2006, Malaysia produced 6,439.6 trillion cubic
feet per day of natural gas and 690,000 barrels of
oil equivalent per day of crude oil.

Malaysia also has the world's largest production

facility at a single location of liquefied natural gas
with production capacity of 23 million metric
tonne per year.
The presence of world renowned petrochemical
companies, such as BASF, BP, Dow, Shell, Exxon
Mobil, Eastman Chemical, Idemitsu, Mitsui,
Toray, Kaneka, Polyplastic, Dairen, Thirumalai
and West Lake Chemical speaks clearly of
Malaysia's potential as an investment location for
petrochemical industries.
Most of these companies are working in
collaboration with Malaysia's national petroleum
company, PETRONAS.
To sustain the competitiveness of the Malaysian
petrochemical industry, value integration
through inter-plant synergies is promoted.
The development of petrochemical zones where
petrochemical plants are clustered together has
created a value chain which ensures the
progressive development of downstream
petrochemicals activities.
The petrochemical zones are in Kertih,
Terengganu; Gebeng, Pahang; and Pasir
Gudang/ Tanjung Langsat, Johor.
The development of world class centralised
utility facilities (CUF) that offer a ready
and reliable supply of crucial utilities such
as power, steam, and demineralised and
cooling water, as well as services such as
primary waste water treatment, further
enhances the efficiency of the integrated
petrochemical zone concept, making
Malaysia competitive as similar sites in the
region and the Asia Pacific.
Malaysia's petrochemical sector has
also
contributed significantly to the development of
local downstream plastic processing activities.
World-scale producers of LDPE, LLDPE,
HDPE, PP, EPS, GPPS, HIPS, PVC, ABS, SAN,
PET
and PBT resins have plants
established Malaysia, thus in supply
providing material
feedstock a steady
for the plastic of
industry.
EPS – Expandable Polystyrene

GPPS – General Purpose

Polystyrene HIPS – High Impact

Polystyrene

ABS – Acrylonitrile Butadiene

These factors have led the plastic products
industry to become one of the most dynamic
industries in Malaysia's manufacturing sector.
There are more than 1,500 companies in
operation, producing products ranging from
common household items, packaging materials
and conveyance articles to parts and
components for the electrical and electronics,
automotive, office automation, computer and
telecommunications industries.
The plastic industry can be divided into seven sub-
sectors:
a) packaging - both flexible and rigid (including
bags, films, bottles and containers), remains
the
largest market for the plastic industry
b) electrical & electronics
c) household
d) automotive
e) construction
f) agriculture
g) others
Petronas Penapisan (Terengganu) Sdn Bhd Kertih,
Terengganu
Petronas Penapisan (Melaka) Sdn Bhd Tangga
Batu, Melaka
Malaysia Refining Company Sdn Bhd Tangga
Batu, Melaka
Shell Refining Company Bhd Port Dickson,
Negeri Sembilan
PETRON (Malaysia) Bhd Port Dickson, Negri
Sembilan

Overview of deep water drilling

To complement the existing gas reserve and to ensure
further security of gas supply, Malaysia has forged
partnerships with other ASEAN members for the supply
of gas such as Vietnam, Indonesia and the Malaysia-
Thailand Joint Development Area (JDA). In addition, gas
supply will be further enhanced with the implementation
of the ASEAN gas grid, a venture to make gas available
to all the 10 ASEAN countries.

The availability of feedstock at competitive prices has

made Malaysia a viable petrochemical hub in the ASEAN
region, attracting more than US$9 billion of investments
from leading petrochemical and chemical manufacturers.
The six gas processing plants located in Kertih,
Terengganu - with a combined capacity of 2,000
million cubic feet (mmscf) of sales gas per day –
ensure the industry an adequate supply of
petrochemical feedstocks such as methane (sales
gas), ethane, propane, butane and condensates.
Meanwhile, Malaysia’s Peninsular Gas
Utilisation (PGU) trans-peninsular gas
transmission pipeline channels sales gas to
industries around the country.

How Petroleum exploration & refining

http://www.youtube.com/watch?v=8W8SW98-sXQ
 Classification
of
Petrochemical
Light Petrochemicals: These are mainly
used as bottled fuel and raw materials
Medium Petrochemicals:for other organic chemicals.
Hydrocarbons with 6 The– 12 carbon atoms are called
"gasoline", which are mainly used as automobile fuels. and
lightest of these -- methane, ethane Octane, with eight carbons,
ethylene -- are gaseous at room
is a particularly good automobile fuel, and is considered to be of high quality.
Kerosene contains 12 temperature.
to 15 carbonsThe andnext lightest
is used fractions
in aviation fuels, and also as solvents
comprise
for heating and lighting. petroleum ether and light
naphtha with boiling points between 80
and 190 degrees Fahrenheit.
Heavy Petrochemicals: These can be generally categorized as diesel oil, heating oil
and lubricating oil for engines and machinery. They contain around 15 and 18
carbon atoms with boiling points between 570 and 750 degrees Fahrenheit. The
heaviest fractions of all are called "bitumens" and are used to surface roads or for
waterproofing.
 Petrochemical Zones in
Malaysia
Petrochemical Zones Facilities & Infrastructures Products

Kertih, Terengganu • Gas processing plants • Praxylene

• Peninsular Gas Utilisation • Benzene
(PGU) project • Ammonia
• Centralised utility • Acetic Acid
faciltities • Ethylene
• Institute Technology • Polyethylene
Petroliam • Ethanolamines
• Kertih Port • Ethoxylates
• Kuantan Port • Glycol Ethers
• Butanol
• Butyl Acetate
• Ethylene Oxide
• Ethylene Glycol
• Low Density Polyethylene
• Vinyl Chloride Monomer
• Polyvinyl Choride

Gebeng, Pahang • Peninsular Gas Utilisation Acrylic Acid and Esters

(PGU) project • Syngas
• Centralized utility facilities • Butyl Acrylate
• Kuantan Port • Oxo-alcohols
• Environment Technology • Phthalic Anhydride and Plasticizers
Park • Butanediol
• East Coast Highway • Tetrahydrofurane
• Gamma-butyrolastone
• Polyester Copolymers
• Purified Terephthalic Acid
• Dispersion Polyvinyl Chloride
• Methyl Methacrylates Copolymers
• MTBE
• Propylene
• Polyacetals
• Polypropylene
• Polybtylene Terephthalate (PBT)
Petrochemical Zones Facilities & Infrastructures Products

Pasir Gudang - Tanjung • Peninsular Gas Utilisation • Ethylene

Langsat, Johor (PGU) project • Propylene
• Tank farms developed for • BTX
storage of petrochemical liquid • Polyethylene
• Johor Port • Polypropylene
• Tanjong Pelepas Port • High Impact Polystyrene
• Tanjung Langsat Port • Ethylbenzene
• Styrene Monomer
• Expandable Polystyrene
• Ethylene Vinyl Acetate

Bintulu, Sarawak • Bintulu Port • Ammonia

• Bintulu Airport
• Urea
• LNG
• Synthetic Gas Oil
• Synthetic Kerosene
• Synthetic Naphtha
• Synthetic Solvents
• Synthetic Detergent Feedstock
• Synthetic Paraffin Wax / Waxy
Raffinate

{Source: MIDA}
Sustainability Definition & Sustainable
Model
“Sustainable development
is development that meets
the needs of the present
without compromising the
ability of future
generations to meet their
own needs”, *Brundtland Report released
by the United Nations in 1987

Sustainable
Development introduces
two notions:
Scarcity of natural
resources
Co-responsability of
businesses and societies where
Key factors toward achieving sustainability in the
petrochemical industry