Petroliam Nasional Berhad (Petronas), and Saudi Aramco have formed two joint ventures for the Refinery and Petrochemical Integrated Development (RAPID) project. The joint ventures allow the parties equal ownership and participation in the operations of a new refinery and selected petrochemical facility within Pengerang Integrated Complex (PIC), located in Johor, Malaysia.
This partnership between two of the largest national oil companies globally will bring together their resources, technologies, experience and expertise. Saudi Aramco will supply 50% of the refinery’s crude feedstock requirements, with the option of increasing this to 70%. Meanwhile, natural gas, power and other utilities will be supplied by Petronas and its affiliates. The parties will share in the rights to offtake the production of the joint ventures on an equal basis.
With a capacity of 300 000 bpd of crude oil, the refinery will produce a range of refined petroleum products, including gasoline and diesel, which meet Euro 5 fuel specifications. It will also provide feedstock for the integrated petrochemical complex, which is capable of producing 3.3 million tpy of petrochemical products.
Currently 87% completed, the RAPID project is on track for refinery start-up in 1Q19. Once operational, the project will strengthen Petronas' ability to be flexible and reliable in meeting customers’ needs, but also bolster the company’s position as the largest glycol and polypropylene producer, as well as the second largest HDPE and isononanol producer in Southeast Asia.
Located on a 6239 acre site approximately 400 km south of Kuala Lumpur, the RAPID project forms part of Malaysia’s ambitious 22 000 acre PIC under the Malaysian government’s Economic Transformation Programme to establish new engines of growth and push the nation into a new frontier of technology and economic development in the oil and gas downstream sector.
Apart from the refinery, cracker and the downstream petrochemical facilities comprising the RAPID project, the PIC also includes the development of associated facilities such as a co-generation plant, an LNG re-gasification terminal, a raw water supply project, a deep water terminal, as well as centralised and shared utility facilities.
Read the article online at: https://www.hydrocarbonengineering.com/refining/29032018/saudi-aramco-and-petronas-form-joint-ventures-for-rapid-project/