Petronas Chemicals sets aside RM4 billion capex for 2017

KUALA LUMPUR: Petronas Chemicals Group Bhd (PCG) has allocated a capital expenditure (capex) of RM4 billion for the current financial year ending Dec 31, 2017 (FY17), said its chairman MD Arif Mahmood.
"We spent about RM4 billion last year. This year it will be about the same. The bulk of it will be for Pengerang Integrated Complex (PIC). For the INA project (isononanol plant), we will spend about US$440 million over a period till 2019," he told reporters at its AGM today.
Last week, PCG approved the final investment decision for the INA project, which is located at PIC. The project is part of PCG's strategy to grow further in specialty chemicals.
Overall, PIC's progress is about 62% as of end March 2017. The progress for the overall petchem project for polymer and glycol is over 30% and slightly ahead of schedule.
Managing director and CEO Datuk Sazali Hamzah said the completion of PIC and its current plants will provide more growth opportunities in chemicals, derivatives and specialty.
"We continue to assess further opportunities beyond 2020 in downstream derivatives and specialty chemicals at Pengerang, Kertih, Gebeng and East Malaysia," he said.
PCG expects to fund its FY17 capex via internally generated funds. As of Dec 31, 2016, the group's cash stood at RM7.4 billion.