Kuantan, Malaysia

BASF PETRONAS Integrated Aroma Ingredients Complex

Fluor completed the front-end-engineering and design (FEED) for the BASF PETRONAS Chemicals Integrated Aroma Ingredients Complex in Kuantan, Malaysia in September 2013. Fluor was awarded the engineering, procurement and construction management (EPCM) contract in January 2014 when the project was sanctioned by the owner.

In September 2016, Fluor announced the mechanical completion of a citral facility and associated infrastructure. The facility will produce citral, among other aroma ingredients, to meet the growing demand for citral-based products in the flavor and fragrance industry.

Client's Challenge

BASF PETRONAS Chemicals is a Malaysian-based joint venture, founded in 1997, between BASF SE and Petroliam Nasional Berhad (PETRONAS), Malaysia's National Oil Company, under its subsidiary PETRONAS Chemicals Group (PCG).

BASF is the world's leading global chemical company and the leading producer of citral-based products worldwide.  BASF also produces other aroma ingredients such as geraniol, citronellol, linalool and L-menthol, which are sold to the flavor and fragrance industry. The PETRONAS Chemicals Group, founded in 1997, is the leading integrated chemicals producer in Malaysia.

BASF PETRONAS Chemicals is building a facility in Kuantan, Malaysia for the production of citral and its precursors. Citral is identical to a component of lemongrass and other essential oils.

The goal is to help meet the growing demand of global customers for citral-based products, for example in the flavor and fragrance industry, especially in the Asia Pacific region. Associated downstream processes and plants will manufacture citronellol and L-menthol.

Fluor's Solution

Fluor completed the FEED for the facility.  Engineering was led from Manila, the Philippines, and procurement was led from Shanghai, China.  Fluor also completed the FEED for a downstream L-menthol unit in June 2014.

During construction, Fluor managed a workforce of nearly 2,200 craft workers, comprised of 10 different nationalities. With the concurrent construction of the citral facility and menthol unit, the project achieved an accelerated 24-month construction schedule and navigated multiple critical process tower lifts in a compact working environment.

Implementing a strong health, safety and environment culture at the site, the projects achieved more than 8 million work hours without a lost-time incident and received the Malaysian Occupational Safety and Health Practitioner's Association Gold Award for excellence in occupational safety and health.


The manufactured chemicals will be used mainly in home and personal care products and fine fragrances, as well as in the food and pharmaceutical industries. Mechanical completion on a citral facility and associated infrastructure for the Integrated Aroma Ingredients Complex was announced in September 2016. Ramp-up of the downstream L-menthol unit is expected in 2017.

This is the most recent project for Fluor in Asia, having delivered complex engineering, procurement and construction projects in Asia for 35 years.