Italy’s Tecnimont and its joint venture partner HuanQiu Contracting & Engineering Corporation (HQC) of China have been awarded a contract by Malaysia’s PRPC Polymers for a high-density polyethylene (HDPE) plant. PRPC Polymers is a wholly owned subsidiary of Petronas Chemicals Group, which is part of Malaysia’s state-owned oil and gas giant Petronas.

Under the lump sum turnkey contract, which is worth around $328 million, the contractors will provide complete engineering, erection and construction services up to start-up and guarantee test run, as well as supplying equipment and material. The plant will be located inside the Petronas Integrated Complex in Pengerang, in the southeastern region of Johor. Based on LyondellBasell’s Hostalen Advance Cascade Process (HACP) technology, the facility will have a capacity of 400,000 t/y. Completion is scheduled for early in the third quarter of 2019.

Pierroberto Folgiero, CEO of Maire Tecnimont, said the award enables the group to expand its geographical footprint in southeast Asia, an area of interesting downstream prospects. This latest award follows a $482 million contract granted to the Tecnimont/HQC JV in November 2015. Tecnimont has 65% in the JV with HQC holding the remaining 35%.

In separate news, Petronas has signed a Memorandum of Understanding with Yayasan Hartanah Bumiputera Sarawak (YHBS) to jointly conduct a pre-feasibility study for a methanol project in Bintulu, Sarawak, Malaysia. The study will assess the overall technical and commercial viability and feasibility of developing a methanol and derivatives complex at the Samalaju Industrial Park, near Bintulu.

At the same time, Petronas signed a Heads of Agreement with Huchems Fine Chemical Malaysia for the supply of natural gas over a 20-year period to Huchems’ proposed petrochemical plant at the same industrial park to produce ammonia and derivatives. Petronas said both agreements are part of its ongoing efforts to work with the Sarawak state government to transform Sarawak into a regional petrochemical hub.