Khamis, 19 April 2012

Final investment decision on PETRONAS RAPID Project due Mid-2013

JOHOR BAHARU, April 19 (Bernama) -- National oil company, Petronas will announce the final investment decision regarding the massive RM60 billion Refinery and Petrochemical Intergrated Development (RAPID) project in Pengerang in MID-2013.

Nevertheless, RAPID Executive Project Director Wan Yusoff Wan Hamat said the project was highly likely to proceed and come on stream in 2016 to turn Pengerang, in South-eastern Johor, into the Asia Pacific petrochemical hub. "Because of its potential, the project (RAPID) is highly likely to go on as planned," he told a press briefing on RAPID at Kota Iskandar, Nusajaya.

Prime Minister Datuk Seri Najib Tun Razak announced the RAPID project in May last year which would expand Petronas'' downstream business and create massive spin-off to the national economy.

Petronas, Wan Yusoff said, proposed to embark on the project in anticipation of strong future growth in the demand for differentiated and specialty chemicals, identified as a potential contributor to further enhance Malaysia's petrochemical industry.

"RAPID presents an opportunity for Petronas to further expand and divesify its petrochemical business through volume growth, a more diversified products base and a move into high-value and premium specialty chemicals market," said Wan Yusoff.

He said, currently the RAPID project had progressed to a front-end engineering design stage and Petronas was finalising the selection of potential partners, as well as, licensors for the various facilities within the project.

Petronas completed a detailed feasibility study and a site topographical survey and soil investigation work May last year.

He said the RAPID project in Pengerang would be the largest greenfield development in a single location in the country.

"The scope and scale of RAPID is greater than that of the Petronas''s Melaka, Kertih and Gebeng complexes combined in a single location," he said adding that, to optimise cost and be competitive, petrochemical facilities must be integrated.

RAPID will comprise a crude oil refinery with a processing capacity of 300,000 barrels per day and a Naphtha Cracker with a combined annual production capacity of three million tonnes of Ethylene, Propylene and C4 and C5 Olefins.

It will also have petrochemicals and polymer complex for differentiated and highly specialised products as well as C4 (Butanes) and C5 (Penthanes) derivates complexes focusing on various grades of synthetic rubber.

Wan Yusoff also said to support the development of RAPID, Petronas was also assessing the feasibility of developing a new Liquefied Natural Gas (LNG) receiving and re-gasification terminal and co-generation power plant.

"The facilities will cater to the energy needs of the RAPID complex and contribute towards the efforts of diversifying the sources of gas and energy supply to meet existing and future demand in Peninsular Malaysia," he said. The new re-gasification terminal will have receiving facilities for LNG carriers and a new pipeline to tie-in to the existing Peninsular Gas Utilisation System.

He said, apart from meeting the internal RAPID requirements for power and steam, any excess capacity from the co-generation plant may be supplied to others.

Wan Yusoff said Petronas was currently engaged in discussions with up to 10 potential investors for the RAPID project.

He also said the national oil company was in the midst of discussions with Dialog Group Bhd for a possible joint-venture in an oil tankage terminal in Pengerang, to complement the RAPID project.

The Dialog Group Bhd is currently undertaking the construction of the RM5 billion Pengerang Independent Deepwater Petroleum Terminal.

-- BERNAMA

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