3 April 2014
Details
The PETRONAS Board of Directors
has approved the Final Investment Decision (FID)
for the development of the
Pengerang Integrated Complex (PIC)
in Southern Johor, Malaysia.
The FID, approved today,
marks a significant milestone in the progress of
the proposed PIC, which comprises
* a world scale Refinery and Petrochemical
Integrated Development (RAPID) and
* other associated facilities.
RAPID is estimated to cost about US$16 billion while
the associated facilities will involve an investment of
about US$11 billion.
PETRONAS’ President & Group CEO
Tan Sri Dato' Shamsul Azhar Abbas said:
“The FID is a critical stage gate in our decision making process.
PETRONAS undertook a rigorous review of the project,
including independent third party assessments
to ensure it meets our criteria for
long-term profitable and sustainable growth.
This decision is in line with our commitment
to capital discipline, and with the Board’s approval
we look forward to
progressing the development of the project as planned.”
“We will continue to work closely with
the Federal and Johor State governments
to ensure the project’s smooth implementation.
In a relatively condensed period of time,
we have accomplished a lot of work
in establishing an excellent base
to move forward with confidence to implement our plans.”
Subsequent to PETRONAS’ decision,
the partners’ respective FIDs will be announced
in due course upon the approval of their respective boards.
The PIC is scheduled to commence construction
upon the full hand-over of the project site to
PETRONAS by the State Government.
Based on the current progress,
the project is poised for
its refinery start-up by early 2019.
The project will further strengthen PETRONAS’ position
as a key player in the Asian chemicals market,
focusing on key growth areas of
differentiated and specialty chemicals and
capturing the growing
automotive, pharmaceutical and consumer products sectors.
Domestically, the PIC will contribute towards meeting
the growing demands for petroleum products
and Euro 4M and Euro 5 specification fuels.
Developed within a 6,242-acre site, the PIC will consist of
* a 300,000 bpd refinery and
* a petrochemical complex with a combined capacity of
producing 7.7 mtpa of various grades of products
including differentiated and specialty chemicals products
such as
synthetic rubbers and high grade polymers.
The project will also see the development of
a host of associated facilities i.e.
* the raw water supply facility,
* power co-generation plant,
* LNG regasification terminal and other ancillary facilities.
At the peak of its construction,
the PIC Project is expected to have
a workforce of about 70,000 people
with varying skills and disciplines.
In its operational stage,
the PIC will require over 4,000 employees.
The PIC is part of
the larger Pengerang Integrated Petroleum Complex (PIPC)
proposed and promoted by the Johor State Government.
With its strategic location along
one of the world’s busiest shipping lanes and
its proximity to international trading hub,
the PIPC is well positioned to be
the next regional downstream oil and gas industrial hub.
WWW.CHEMWINFO.COM BY KHUN PHICHAI
