By JASON MG

KUALA LUMPUR -- Malaysia's state energy company Petronas and German chemical company BASF said Monday they have scrapped a proposed joint venture to develop a specialty chemicals production facility in Malaysia.

The proposed partnership was terminated because both parties couldn't agree on the "terms and conditions" for the project in the southern state of Johor, the companies said in a joint statement.

However, Petronas and BASF "are committed to continuing their existing long-term partnership" at BASF Petronas Chemicals in the eastern state of Pahang, they said.

Dow Jones Newswires