Avaibility of propylene in Malaysia

The availability of the feedstock, propylene must be considered in the initial phase
in order to enhance the development of industry in the future. Malaysia has become the
major exporters for the petrochemical products instead of being the importer before
(Malaysia Petrochemical Association,2015). A long-term reliability and security of gas
supply, a well-developed infrastructure and cost competitiveness in market are the factor
that contributed to the growth of petrochemical industry in Malaysia (Malaysia
Petrochemical Association,2011).

There are three largest producers of propylene in Malaysia which are Titan
Petchem (M) Sdn Bhd, MTBE (M) Sdn Bhd and Optimal Olefins (M) Sdn Bhd which
supply the propylene with capacity of 854,000 mtpa (Malaysia investment development
authority,2009). However, between those three, Lotte Chemical Titan Holdings Sdn Bhd
which is owned by South Koreas Honam Petrochemicals Corporation is Malaysias
largest integrated producer of olefins and polyefins.

Raw materials, oil and gas are present abundance off the shores of Malaysia and
the investment of Malaysias government in petrochemical related infrastructure in
specially designated zones are the factors and advantages for Malaysias petrochemical
industry (Choo,2010). There are 27 petrochemicals plants throughout the country that
produce 38 types of petrochemicals and 41 companies in operation that produce
petrochemical products with capacity of 12.8 million tons annually (The Asia
Petrochemical Industry Reference,2009 as cited in Choo,2010). Therefore, the
availability of the feedstock of propylene should not be worried in the production of 1,3-
Butadiene.