Malaysia: New Fertilizer Nitrogen Complex

Japan’s Mitsubishi Heavy Industries, Ltd. (MHI), jointly with APEX Energy Sdn. Bhd. of Malaysia, and PT Rekayasa Industri (REKIND) in Indonesia, has received an order from PETRONAS Chemical Fertilizer Sabah Sdn. Bhd. (PCFSSB) for a project to construct a large-scale ammonia/urea fertilizer plant. The contract for the construction of the nitrogen plans is of US$1.5 billion. PCFSSB is a subsidiary of PETRONAS Chemicals Group Berhad (PCG), which is an affiliate company of PETRONAS, the national oil company of Malaysia. The contract was signed today in Malaysia. The plant will be the first large-scale fertilizer plant order from Malaysia in 15 years since1996 when MHI received an order from PETRONAS.

The new urea fertilizer plant will be built in Sipitang, approximately 145 kilometers southwest of Kota Kitabalu, the mercantile city in Sabah State on the Island of Borneo. Using natural gas as its feedstock, the plant will have a capacity to produce 2,100 mtpd (metric tons per day) of ammonia and 3,850 mtpd of urea fertilizer. It will adopt process technologies from Haldor Tops.

The construction is expected to start in the second quarter of 2012 with completion targeted in 2015. MHI, as leader of the consortium, will be responsible for the basic and detailed design work, the procurement of equipment and the dispatch of technical advisors for installation and test operation.

Malaysia in the second largest grower of palm oil and production may reach 18.1 million metric tonnes this year, compared to 17 million tonnes of the tropical commodity last year.

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