Simultaneous Shutdown of PE, PP and Two RFCC Units, Capacity Impact ~2.5 Million MT/Year
According to foreign media reports on October 20, a loss of external power supply triggered an unplanned shutdown of polyethylene (PE) and polypropylene (PP) production lines, together with two Residue Fluid Catalytic Cracker (RFCC) units at the Pengerang Refining and Petrochemical (PRefChem) complex in Pengerang, Johor, Malaysia, operated by Petroliam Nasional Berhad (PETRONAS).
Plant Profile
Located within the Pengerang Integrated Complex (PIC), PRefChem is Malaysia’s largest integrated refining‑petrochemical joint venture, co‑developed and run by PETRONAS and Saudi Aramco. Public data shows the complex hosts combined capacity of roughly 3.4 million metric tons per annum for ethylene, propylene, butadiene, benzene and MTBE. It is equipped with downstream polyolefin facilities for PE and PP plus two RFCC units. RFCC units convert vacuum residue into high‑value light distillates such as gasoline, propylene and butylene, serving as core profit‑driving equipment for the refinery.
Recent Equity Change
On May 25, 2026, PETRONAS and Saudi Aramco inked an agreement under which Aramco divested its full stakes in Pengerang Refining Company and Pengerang Petrochemical Company to PETRONAS. Upon deal completion, PRefChem will become a wholly‑owned subsidiary of PETRONAS.
Multiple Unplanned Outages Already in 2026
Driven by heightened geopolitical tensions in West Asia and feedstock disruptions stemming from shipping closures in the Strait of Hormuz, PRefChem has suffered several unplanned shutdowns in 2026. Unit 1 RFCC went offline around March 9 due to feed supply cuts; the ethylene cracker halted in late‑May amid feed shortages and only resumed in phases from late‑June through early‑July.
This latest mass outage of polyolefin and RFCC units caused by power failure marks another major supply disruption this year. It may exert short‑term pressure on spot availability and pricing for PE, PP and propylene across Southeast Asia.
India Issues Customs Notice: Anti‑Dumping Duty Levied on Chinese Imports
On October 24 2026 (local time), India’s Ministry of Finance issued Notification No. 26/2026‑Customs(ADD), re‑imposing anti‑dumping duties on titanium dioxide (TiO₂) originating in or imported from China. Duty rates range from USD 460‑681 per metric ton, payable in Indian Rupees.
Post time: Oct-28-2026