19 DECEMBER 2014 @ 11:57 PM
BY ZAIDI ISHAM ISMAIL
KUALA LUMPUR: Petroliam Nasional Bhd’s (Petronas) US$27 billion (RM93.96 billion) Pengerang Integrat ed Complex (PIC) in Johor is on track for refinery start-up by early 2019, after several key projects were confirmed yesterday.
PIC consists of the US$16 billion Refinery and Petrochemical Integrated Development (Rapid) complex and US$11 billion of associated facilities, such as a co-generation plant, a liquefied natural gas regasification terminal, an air separation unit, a raw water supply project and an industrial terminal.
Petronas announced yesterday that it had signed a shareholders agreement with Dialog Group Bhd and Netherlands-based Vopak to jointly develop the terminal.
The national oil giant also picked United States-based LyondellBasell’s spherizone and spheripol polypropylene process technologies for a 900-kilotonne-per-annum polypropylene plant that will be built at the Rapid site.
The terminal, to be developed under the Pengerang Terminal Phase 2 project, will have a storage capacity of up to 2.1 million cum for crude, refined products, petrochemical products and liquefied petroleum gas.
The Pengerang Terminal Phase 2 project will be built on a 63.11ha plot next to the existing Pengerang Independent Terminal, which is scheduled to be commissioned in line with the refinery complex by 2019.
On the project by Houston-based LyondellBasell, Petronas said the firm was due to complete preparing a detailed scope, execution plan and cost estimate for the polypropylene plant by February next year.
The engineering, procurement, construction and commissioning phase is scheduled to start in November next year, with plant mechanical completion by July 2018.
Polypropylene products are used in many applications across industries, from automotive to household products.
Developed within a 2,509.28ha site in Pengerang, Rapid is aimed at strengthening Petronas’ position as a key player in the Asian chemicals market, focusing on differentiated and specialty chemicals.
PIC forms part of Johor’s Pengerang Integrated Petroleum Complex, an initiative under the Economic Transformation Programme, to establish new engines of growth for Malaysia and meet its future energy needs.