By TMR / Pic By BLOOMBERG

Chemical Co of Malaysia Bhd (CCM) has received a contract from Petroliam Nasional Bhd (Petronas) to supply caustic soda to Petronas Refinery and Petrochemical Corp Sdn Bhd (PRP).

In an exchange to Bursa Malaysia yesterday, CCM noted the supply would be based on PRP’s required demand, which is estimated to be up to a maximum 351,000 metric tonnes.

The contract value is estimated to be worth RM351.9 million for the primary period of three years based on current market prices and pricing mechanism.

The price agreement has commenced on April 15, 2019, and will last until April 14, 2022, with an option to extend for one more year.