Petronas plans second methanol plant for Labuan Is.

Malaysia’s Petronas has announced plans to construct a second “world-scale” methanol plant next door to its existing Petronas Methanol (Labuan) Sdn Bhd methanol plant in the Rancha-Rancha industrial area on the island of Labuan.

In a statement the state-owned firm said, “The new plant will have a production capacity of 1.7 million tonnes per annum or 5,000 tonnes per day [and] feedstock of about 150 million standard cubic feet per day of gas will be supplied from gas fields offshore Sabah.”

“Methanol produced from the new plant will be supplied to the domestic market as well the growing markets in Southeast Asia, Northeast Asia and India. The development of the plant will also provide job and business opportunities especially for Sabahans,” it added.

The new facility is expected to make use of Lurgi’s proprietary Mega Methanol technology for its day-to-day operations. Operations are expected to commence by the end of 2007.

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