Sunday, May 13, 2012

Petronas RAPID to Draw RM120,000,000,000

KOTA TINGGI: The Petronas Refinery and Petrochemical Integrated Development (Rapid) project in Pengerang is expected to draw RM120 billion in investments during the next five to six years.

Prime Minister Datuk Seri Najib Razak said the complex had recently also drawn the interest of a Taiwan-based petrochemical company, which is conducting an investment study to build an integrated oil and petrochemical complex to complement the Petronas Rapid project.

Najib said the Taiwan petrochemical company’s project was worth between US$10 billion and US$12billion (RM30.72 billion and RM36.86 billion).

“Both projects will benefit from the shared amenities and infrastructure.

The complex consists of a refinery with a 150,000-barrel-a-day capacity and a naphtha cracker with a 800,000-tonne capacity per year.

“If these two projects are carried out successfully, the south Johor region would be able to produce 450,000 barrels of oil and 3.8 million tonnes of naphtha cracker per year.

“This will strengthen Johor’s role as a premier centre for oil, gas and petrochemical industries in Asia and the rest of the world,” said Najib at the launch of the Petronas Rapid project at Kampung Datuk Abdul Ghani Othman, in Pengerang, yesterday.

Sultan of Johor Sultan Ibrahim Sultan Iskandar launched the project.

Present were Johor Menteri Besar Datuk Abdul Ghani Othman and Petronas president and chief executive Datuk Shamsul Azhar Abbas.

Najib said Petronas Rapid was among the high-impact projects under the government’s Economic Transformation Programme (ETP), which would bring about a big change to the people’s socioeconomic status, particularly in Johor.

In terms of investment value, Petronas Rapid’s investment projection was three times that of Klang Valley’s My Rapid Transit project.

“Oil, gas and energy have been identified as the main sectors that would spur industrial development and drive the country’s economy to a more competitive level,” Najib said.

The Rapid project, on 2,000ha, is bigger than the combined areas of the Petronas hubs in Malacca, Kerteh and Gebeng. It is expected to produce nine million tonnes of petroleum products and 4.5 million tonnes of petrochemicals per year, including downstream products.

The facility would also have its own regasification plant that will enable it to receive liquefied natural gas (LNG) tankers.

Petronas also recently signed an agreement with German chemical company BASF SE to develop, build and oversee the world-class amenities and chemical plants, which would be set up at the Rapid complex.

Ghani called for Petronas to provide ample opportunities for Johor-based companies to be involved in the project.

“Locals should also be given the necessary guidance on how to benefit from this project.”

Ghani said local companies should maximise their participation in potential complementary industries, which will be developed along with the project.

He said Pengerang, located at the southeastern tip of Johor, would for certain be transformed from a backwater in the state into the most exciting development area within the next 10 and 15 years.


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