Wednesday, 23 January 2013

Petronas mulls Evonik pact


Petroliam Nasional Bhd, Malaysia’s state energy company, aims to start a specialty chemicals venture with Germany’s Evonik Industries AG after cancelling a similar partnership with BASF SE, a person familiar with the matter said.

Petronas, as the company is known, may announce the proposal with Germany’s biggest closely held chemicals company today, said the person who asked not to be named as the information is private. Terms of the transaction are still being discussed, the person said.

Petronas and BASF had planned to invest a total of 1 billion euros (US$1.3 billion) on the project in Malaysia’s southern Johor state and expanding an existing joint venture, according to the European manufacturer’s website. The companies said in a statement Jan. 21 that they mutually agreed to terminate the partnership after failing to agree on terms.

Azman Ibrahim, a Petronas spokesman, wasn’t immediately available for comment by phone. Peter Meinshausen, Evonik’s regional president, couldn’t immediately be reached by phone at his office in Kuala Lumpur today. 

The proposed Johor project is part of a US$20 billion refining and petrochemicals complex planned by Petronas in Pengerang, bordering Singapore. BASF will continue with expanding its existing chemicals partnership with the national energy company in Malaysia’s Pahang state, the companies said. -- Bloomberg

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