MALAYSIA: Kuokuang Petrochemical drops plans for $11-billion Malaysian investment

Last year, CPC, owner of 43% of KPTC, signed an agreement with the Johor government to build the project. The complex, originally planned to be built in Taiwan, was to include a 300,000-b/d refinery, a 1.2-million-t/y ethylene cracker, an 800,000-t/y paraxylene plant and other downstream units.

CPC cited changes in the petrochemical industry's macro environment, as well as the trend toward shale gas extraction, which has impacted the economics of naphtha cracking. CPC Chairman Lin Sheng-Chung added that KPTC is reconsidering all overseas investments that involve naphtha.

KPTC's other partners include Oriental Union Chemical Corp., China Manmade Fibers Corp., Chang Chun Group, Fubon Financial Holding Venture Capital and Pan Asia Chemical Corp.

Source: Weekly "PetroChemical News", Durham, NC, USA; 2 Sept 2013
(Syed Rashid Ali, Karachi, Pakistan)