Malaysia’s Petronas Chemicals Group Berhad (PCG) has entered into a Heads of Agreement (HOA) with the State Government of Sabah to divest 25% of its interest in Petronas Chemicals Fertiliser Sabah Sdn Bhd to Sabah state-owned oil and gas company SMJ Sdn Bhd, PCG announced in a Jan. 9 media statement.
SMJ is a wholly-owned subsidiary of Sabah State. PCG said the divestment is part of its strategic effort to position itself as a preferred partner in shaping and delivering the aspiration of PCG and SMJ to sustain and grow the petrochemicals business in Sabah.
Petronas Chemicals Fertiliser Sabah was established in 2011 to construct and operate an integrated ammonia and urea production complex in Sipitang Oil and Gas Industrial Park in the municipal district of Sipitang, approximately 145 kilometers southwest of Kota Kinabalu, the mercantile city in Sabah State on the Island of Borneo (GM Oct. 10, 2011).
According to PCG, the complex has capacity to produce 1.9 million mt/y of ammonia and urea and is the largest single train ammonia and urea plant in Southeast Asia and the third largest urea plant in Asia Pacific. The facility’s daily production capacity includes 2,100 mt for ammonia and 3,850 mt for urea, according to Green Markets’ data.
The urea is used both for agricultural applications as well as feedstock for resins and other chemicals.