The national oil company of Malaysia, known as Petronas, announced plans in May to build a $20 billion oil refinery and petrochemical complex on the country’s southern border with Singapore. In addition to motor fuel, the complex will include petrochemical plants, and Reuters is reporting that international companies like Exxon Mobil Corp. (NYSE: XOM), Royal Dutch Shell plc (NYSE: RDS-A), Dow Chemical Co. (NYSE: DOW) and Japan’s Itochi Corp. and Mitsubishi Corp. talking with Petronas about investing in the petrochemical production. The complex includes a 300,000 barrel/day refinery.
The petrochemicals produced at the plant are targeted for sale in Asian countries such as Myanmar, Bangladesh, and parts of India where the products would be used to make goods like synthetic rubber. Petronas is expected to supply feedstock for the plants from equity investments in oil fields in Africa and Venezuela, leaving its own dwindling reserves of high-quality crude for refining into gasoline. The project is scheduled for completion in 2016.