Petronas to develop US$20 billion integrated refinery and petrochemical complex in Southern Johor
The project, known as the Refinery and Petrochemicals Integrated Development (RAPID) is at the detailed feasibility study stage and would comprise a crude oil refinery, a naphtha cracker that would produce about three million tonnes of ethylene, propylene, C4 and C5 olefins per year and a petrochemicals and polymer complex that would produce differentiated and highly-specialised chemicals.
KUALA LUMPUR: Petronas will construct a US$20 billion integrated refinery and petrochemicals complex in Southern Johor to be commissioned by end-2016, Prime Minister Datuk Seri Najib Tun Razak announced today.
Najib, who is also Finance Minister, said the project would enhance Malaysia refining capacity in products such as gasoline, jetfuel and diesel to meet the nation's growing fuel requirements indigenously and boost fuel exports.
The project, known as the Refinery and Petrochemicals Integrated Development (RAPID) is at the detailed feasibility study stage and would comprise a crude oil refinery, a naphtha cracker that would produce about three million tonnes of ethylene, propylene, C4 and C5 olefins per year and a petrochemicals and polymer complex that would produce differentiated and highly-specialised chemicals.
"This project is indeed a bold undertaking by Petronas, for I am told, the proposed 300,000 barrels per day crude oil refinery capacity is larger than the combined capacities of Petronas' existing refineries in Melaka and Kerteh.
"The proposed petrochemical development also exceeds that of Kerteh and
Gebeng Integrated Petrochemical Complexes in eastern Peninsula Malaysia, combined," Najib, said when announcing the project at the Petronas headquarters here.
"While RAPID is not one of the entry point projects (EPP) outlined within the ambit of the Economic Transformation Programme (ETP), much of what Petronas is setting out to do is in line with the government's aspirations to turn Malaysia into a leading petroleum industry hub in the region," Najib added.
Najib said the projects presented Malaysia with a major vehicle by which to attract foreign direct investments into the country, bolster private investment and expand the country's access to world-class technologies.
He said the project would not only facilitate upgrading of the country's industrial capabilities into higher value-added activities, but also enable the capture of a larger portion of the product value-creation in Malaysia to count towards, and bolster the country's Gross National Income (GNI).
"Furthermore, with up to 4,000 employment opportunities of highly-skilled workers potentially created in the oil and gas sector, I am confident RAPID will also provide an avenue for a new generation of technical professionals to develop their skills and capabilities," he said.
The employment opportunities created during the construction phase of the project would of course be much larger than the estimated 20,000 jobs and not to mention the many other spin-offs that would be created in related sectors of the economy, he said.
In addition to the project RAPID, Najib said Petronas would be assessing the feasibility of a Liquefied Natural Gas Receiving and Re-Gasification Terminal, aimed at completing the energy needs of the project.
"Should the proposition prove feasible, this will be the second such terminal in the country, in addition to the one already committed to in the state of Melaka, which will further enhance the security of gas supplies in Peninsular Malaysia," he said. -- BERNAMA
KUALA LUMPUR: Petronas will construct a US$20 billion integrated refinery and petrochemicals complex in Southern Johor to be commissioned by end-2016, Prime Minister Datuk Seri Najib Tun Razak announced today.
The project, known as the Refinery and Petrochemicals Integrated Development (RAPID) is at the detailed feasibility study stage and would comprise a crude oil refinery, a naphtha cracker that would produce about three million tonnes of ethylene, propylene, C4 and C5 olefins per year and a petrochemicals and polymer complex that would produce differentiated and highly-specialised chemicals.
"This project is indeed a bold undertaking by Petronas, for I am told, the proposed 300,000 barrels per day crude oil refinery capacity is larger than the combined capacities of Petronas' existing refineries in Melaka and Kerteh.
"The proposed petrochemical development also exceeds that of Kerteh and
Gebeng Integrated Petrochemical Complexes in eastern Peninsula Malaysia, combined," Najib, said when announcing the project at the Petronas headquarters here.
"While RAPID is not one of the entry point projects (EPP) outlined within the ambit of the Economic Transformation Programme (ETP), much of what Petronas is setting out to do is in line with the government's aspirations to turn Malaysia into a leading petroleum industry hub in the region," Najib added.
Najib said the projects presented Malaysia with a major vehicle by which to attract foreign direct investments into the country, bolster private investment and expand the country's access to world-class technologies.
He said the project would not only facilitate upgrading of the country's industrial capabilities into higher value-added activities, but also enable the capture of a larger portion of the product value-creation in Malaysia to count towards, and bolster the country's Gross National Income (GNI).
"Furthermore, with up to 4,000 employment opportunities of highly-skilled workers potentially created in the oil and gas sector, I am confident RAPID will also provide an avenue for a new generation of technical professionals to develop their skills and capabilities," he said.
The employment opportunities created during the construction phase of the project would of course be much larger than the estimated 20,000 jobs and not to mention the many other spin-offs that would be created in related sectors of the economy, he said.
In addition to the project RAPID, Najib said Petronas would be assessing the feasibility of a Liquefied Natural Gas Receiving and Re-Gasification Terminal, aimed at completing the energy needs of the project.
"Should the proposition prove feasible, this will be the second such terminal in the country, in addition to the one already committed to in the state of Melaka, which will further enhance the security of gas supplies in Peninsular Malaysia," he said. -- BERNAMA
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