BASF and PETRONAS to build first 2-Ethylhexanoic acid plant in ASEAN

BASF and PETRONAS Chemicals Group Bhd (PCG) plan to build a new world-scale plant to produce 2-Ethylhexanoic acid (2-EHAcid) at the site of their existing joint venture, BASF PETRONAS Chemicals, in Kuantan, Malaysia.

This will be the first 2-EHAcid plant in the Association of Southeast Asian Nations (ASEAN) region. Construction is expected to commence in the second quarter, with startup planned by the fourth quarter of 2016. The plant will have a total annual capacity of 30,000 metric tonnes. It will benefit from backward integration into the site, allowing high delivery reliability and maximizing efficient use of energy and feedstock.

“Through this additional capacity BASF will become one of the leading suppliers for high purity 2-EHAcid in the region,” said Stefan Blank, president of BASF Intermediates division.

“This investment further strengthens BASF’s offering in various downstream markets across a broad range of applications,” he said.

2-EHAcid is a chemical intermediate used in the production of synthetic lubricants and oil additives, as well as functional fluids like automotive coolants.

BASF operates a 2-EHAacid plant at its Verbund site in Ludwigshafen, Germany.

The joint venture between BASF and PCG was established in 1997. BASF holds 60% of the capital and PCG 40%. The integrated complex is located at the Gebeng Industrial Zone in Pahang.