Petronas Chemicals expands methanol distribution in Kuantan

Petronas Chemicals Group (PCG) Berhad's new methanol storage tanks are seen in Tanjung Gelang, Kuantan, March 19, 2018. — Picture by Azinuddin Ghazali
Petronas Chemicals Group (PCG) Berhad's new methanol storage tanks are seen in Tanjung Gelang, Kuantan, March 19, 2018. — Picture by Azinuddin Ghazali

KUANTAN, March 19 — Petronas Chemicals Group (PCG) Berhad has expanded its methanol distribution service in Kuantan and its surrounding regions with the operational commissioning of two new methanol storage tanks capable of holding 6,000 metric tonnes of the chemical each.

PCG Managing Director/CEO Datuk Sazali Hamzah said the Kuantan storage tanks were the latest of the group’s external storage facilities for methanol and is expected to serve the surrounding area.

“As you know, storage facility is another component in doing methanol business not just for chemical products. It’s a key important facility in order for us to penetrate the market we are in,” said Sazali during the officiating ceremony on Saturday.

Petronas Chemicals Group (PCG) Berhad's Managing Director/CEO Datuk Sazali Hamzah presents a momento to AstaChem CEO Jerry Looi during the officiating ceremony of the commissioning and operation of methanol storage tanks in Tanjung Gelang, Kuantan, March 19, 2018. — Picture by Azinuddin Ghazali
Petronas Chemicals Group (PCG) Berhad's Managing Director/CEO Datuk Sazali Hamzah presents a momento to AstaChem CEO Jerry Looi during the officiating ceremony of the commissioning and operation of methanol storage tanks in Tanjung Gelang, Kuantan, March 19, 2018. — Picture by Azinuddin Ghazali

The two tanks represent the first joint partnership between Petronas Chemicals Marketing (Labuan) Ltd and One Chem Terminal (OCT) Sdn Bhd which is a joint venture between Nylex (M) Berhad, Asta Chemicals Sdn Bhd and Twin Integrity Sdn Bhd.

The tanks, located at Asta Chemicals’ premises in Kuantan, are the first storage tanks offsite the PCG plant to be managed by OCT.

Nylex Managing Director Datuk Siew Ka Wei said construction of the facilities began in March last year and impressively, was completed by year end.

“Having a tank to ensure supply reliability of methanol to the industrial sector in this entire region is an initial stage for us and of course for PCG it’s another step for the service-oriented industry,” said Siew.

Nylex Managing Director Datuk Siew Ka Wei speaks during the officiating ceremony of the commissioning and operation of methanol storage tanks in Tanjung Gelang, Kuantan, March 19, 2018. — Picture by Azinuddin Ghazali
Nylex Managing Director Datuk Siew Ka Wei speaks during the officiating ceremony of the commissioning and operation of methanol storage tanks in Tanjung Gelang, Kuantan, March 19, 2018. — Picture by Azinuddin Ghazali

Asta Chem CEO Jerry Looi said that OCT has a long-term contract with PCG for the storage and handling of the methanol.

He added the methanol will serve the various industries and PCG clients requiring it within the Kuantan region.

“From the moment the methanol comes in from the ships, we will be handling it. We will store it and help PCG distribute it to their clients here. There are a number of industries and factories here consuming methanol.

“We will also assist PCG if they want to re-export the methanol from here,” Looi said.

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