Chemicals Advance Materials – Petroleum Products

The petroleum products and petrochemicals sector are a prominent and well-established industry in Malaysia, with the nation serving as a significant exporter of various petrochemical goods. These products play a vital role in everyday items like plastics, fertilisers, and apparel. Despite challenges posed by the COVID-19 pandemic, slow demand growth, and capacity expansion, the global petrochemical market was projected to grow to $950.1 billion by 2028, with Malaysia’s industry expected to achieve a higher growth rate of 5-6%, surpassing the country’s GDP.

In response to global trends, industry players are adapting their strategies. Decarbonisation efforts are reducing emissions from stationary combustion, and the focus is on electrification using clean energy for processes like fractional distillation. Investments in energy efficiency and innovative technologies, such as green hydrogen and carbon capture, storage, and utilisation (CCSU), are encouraged. Green hydrogen, derived from renewable sources, is becoming more feasible due to decreasing costs. Additionally, ‘turquoise’ hydrogen holds promise.

Carbon capture and utilisation technologies are being applied throughout the energy value chain, with captured carbon dioxide being stored in depleted offshore reservoirs and then converted into valuable products. Advanced chemical recycling initiatives in Malaysia are transforming plastic waste into recycled resin using pyrolysis, contributing to sustainability efforts.

The Ministry of Investment, Trade and Industry (MITI), in collaboration with the Malaysian Investment Development Authority (MIDA), is leading the way in setting up essential policies and support to attract new green investments into the industry in the years ahead.