Petronas Unit Plans to Construct Asia's Largest Chemical Recycling Plant in Malaysia

Petronas Chemicals Group Berhad, a subsidiary of Malaysia's state-owned energy behemoth, Petronas, has unveiled plans to establish the largest advanced chemical recycling facility in Asia. This state-of-the-art plant is slated to possess a remarkable annual capacity of 33 kilotons.

Situated in Pengerang, within the southern confines of Malaysia's Johor state, this pioneering facility is anticipated to commence operations in the first half of 2026. Its primary objective is to transform end-of-life plastics into valuable pyrolysis oil, subsequently utilized as chemical feedstock in the production of sustainable plastics—a commendable step toward reducing plastic waste and promoting environmental sustainability.

Petronas Chemicals, in an official statement, revealed that it has entered into a strategic agreement with Plastic Energy Limited, an esteemed provider of chemical recycling technology. This collaboration is instrumental in ensuring the successful implementation of the groundbreaking plant. Additionally, the engineering, procurement, and construction contract for this ambitious project has been awarded to Mutiara Etnik Sdn Bhd.

The ambitious endeavor by Petronas Chemicals Group Berhad marks a significant milestone in the realm of advanced chemical recycling, reaffirming the organization's commitment to innovative solutions that address pressing environmental concerns.

The future facility's location in Pengerang, a region well-known for its strategic importance in the petrochemical industry, underscores the significance of this project within the broader context of Malaysia's industrial landscape. By choosing this location, Petronas Chemicals is poised to leverage the existing infrastructure and expertise in the region, facilitating a smoother and more efficient establishment process.

The core function of the advanced chemical recycling plant is to transform end-of-life plastics into pyrolysis oil. This conversion process is a key enabler in the transition towards a more sustainable and circular economy.

The choice of Mutiara Etnik Sdn Bhd as the engineering, procurement, and construction contractor for the project underscores the importance of local expertise and capabilities in the successful execution of this endeavor. Mutiara Etnik Sdn Bhd's role will be pivotal in ensuring that the advanced chemical recycling plant is constructed to the highest standards, meeting safety, quality, and environmental requirements.

The expected operational timeline for the facility, with a target of the first half of 2026, reflects the organization's commitment to expeditiously addressing plastic waste issues and contributing to a more sustainable future. By swiftly moving forward with this project, Petronas Chemicals aims to play a leading role in the advancement of advanced chemical recycling technology and the reduction of plastic waste in the region.