AGILITY TO COLLABORATE

FOR DYNAMIC GROWTH

Datuk Sazali Hamzah

MD/CEO
PETRONAS CHEMICALS GROUP BERHAD (PCG)
MALAYSIA

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 Petrochemical Journey

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 Petrochemical industry will continue to evolve
What we used to be Where we are now What the future holds
• Old technology • Mix of old & new • Faster growth
• Mass production technology • Commodities is still a game
• Less regulation • Commoditisation • Growing opportunity in
• Less competition • Stringent regulation specialty/ niche
• Sellers market • More competition • Technology and innovation
• Good margin for • Buyers market is a game changer
commodities • Customised solutions • Borderless and everybody
• Niche/specialty is growing can play

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 Collaboration to create value is important to pursue
opportunities

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 PCG’s Collaboration

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 PCG grows strategically through collaborations
Production Capacity (mil mtpa)

PC Fertiliser Sabah
PC MTBE
Urea & ammonia in 14.6
PCASB Sabah
PC Aromatics 12.7
Expand urea, & PIC in
Benzene, paraxylene, Pengerang
ammonia in 11.0 10.8
ammonia, VCM, polyvinyl
Bintulu
chloride & acetic acid in Kertih Exit vinyl and PP
PC Methanol 8.9 business
Mega methanol in Labuan
Ethylene &
Propylene,
polyethylene in Kertih 6.9
polypropylene & Olefins, glycols &
MTBE in Gebeng derivatives in Kertih

Methanol in Labuan
2.9 3.1
PC OGD
ABF 2.2
Urea, ammonia &
Urea & methanol in Gurun
0.5
ammonia in
Bintulu PC Fertiliser Kedah
1985 1988 1992 1995 1998 2001 2004 2007 2010 2013 2017 2020
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 PCG’s first venture into petrochemical via collaboration

ASEAN Bintulu Fertilizer, ABF

• Malaysia, Indonesia, Singapore,

Thailand, Philippines

• Each with its strength

• Resource owner
• Operations experience
• Business acumen
• Market reach
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 Through collaborations PCG grows further
Kerteh & Gebeng Integrated
Petrochemical Complexes

• Multi JVs

• Each partner with its strength

• Resource / Molecule
• Technical / Technology
• Operations experience
• Business acumen
• Market reach

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 Continuing our collaboration for future progress
Pengerang Integrated
Petrochemical Complex
• Secure and competitive feedstock supply

• Mega project execution

• Investment risks

• Fully integrated facility

• Marketing capabilities

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 Business collaborations transcend boundaries
Collaboration models that are .. have proven effective in
multi-dimensional.. delivering key outcomes
Customers 1 Growth and innovation

Suppliers 2 Cost reduction

Non-traditional peers 3 Risk management

Broader ecosystem 4 Capital optimisation

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Source: A.T. Kearney
 Business collaborations transcend boundaries
Quantum computing in Platform for sustainable, cost- Reliable, safe and scalable
materials science innovation effective production hydrogen supply solutions

next-generation fermentation specialized

computational methodologies (e.g., process, converting gases containing catalyst to enable the release of
machine learning and sampling) carbon monoxide (CO) into useful hydrogen on demand
products by metabolic processes

+ + electrolysis
+ revolutionary
unique discovery
technology to convert CO2 and
water into solution for storing and transporting
process/experimental design and
hydrogen and CO using electricity large amounts of clean hydrogen from
innovation capabilities
renewable sources

= = =
New acceleration of product and Renewable energy to convert CO2 Emission-free mobility and cleaner
process development to specialty chemicals industry processes
Open 1. https://www.dow.com/en-us/news/press-releases/dow-and-1qbit-announce-collaboration-agreement-on-quantum-computing
Detailed sources: 2. https://corporate.evonik.com/en/media/press_releases/corporate/pages/news-details.aspx?NewsId=72457
3. http://www.digitalrefining.com/news/1005089,Clariant_Catalysts_collaborates_with_Hydrogenious_Technologies.html#.W3Dlc40UmHl
 Collaborations aligned for future growth

The Future

• Collaboration from many partners

• Stakeholders co-create value

• Techno provider to be flexible

• Grow together as tech partner

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 THANK YOU

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