Petronas unit defers upgrade due to product price uncertainty

Reuters

KUALA LUMPUR, Oct 10 (Reuters) - Malaysian state oil firmPetronas said on Wednesday a refining unit in thesouthern state of Melaka has deferred a planned upgrade of alube base oil plant due to the uncertain outlook for productprices.

The refining unit, Petronas Penapisan (Melaka) Sdn Bhd,produces mostly Group III base oil, used to make automotive andindustrial lubricants.

The retrofit would have increased production capacity,currently at about 270,000 tonnes a year, by around 15 percentby 2017, Petronas said in a statement.

(Reporting By Siva Sithraputhran; Editing by Richard Pullin)

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