The Star 5 Dec 13;
KUALA LUMPUR: Taiwan’s CPC Corp has shelved its plans for a multi-billion US dollar integrated refining and petrochemical complex in Pengerang, Johor, reports said on Thursday.
CPC unit Kuokuang Petrochemical Technology Company’s move to scrap the project was because it was no longer competitive, Bloomberg quoted a spokesman with CPC.
The spokesman said the US shale gas boom was pushing down cost of petrochemicals production in the US and also due to an oversupply after expanding in China.
In August 2013, Platts reported Kuokuang scrapped plans to set up the complex in Pengerang due to poor project economics.
Platts reported the original plan was to use naphtha as a feedstock to produce ethylene.
However, the rise of shale gas as an alternative would make it too expensive to compete with other projects and Kuokuang would not be able to export the products, Platts reported.
