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Pengerang, Malaysia is the designated site for RAPID—Refinery and Petrochemicals Integrated Project—a mega-sized refinery and energy-focused industrial and petrochemical complex. RAPID was launched to boost Malaysia’s future energy needs, economic growth and to establish Petronas’ position as a key player in the Asian chemicals market.

The 2,526-hectare site in Pengerang, Johor, is part of the Johor State’s Pengerang Integrated Petroleum Complex (PIPC).

Petronas, Malaysia’s state owned oil company, has awarded 11 contracts for the PIC portion of the development. The PIC development includes the refinery and petrochemical integrated development complex and its associated facilities including the Pengerang Co-generation Plant (PCP), re-gasification terminal 2 (RGT2), air separation unit (ASU), raw water supply project (PAMER) and crude and product tanks (SPV2). Five of the contracts were focused on engineering, procurement, construction and commissioning (EPCC) for the refinery and steam cracker component of the project, according to the Malay Mail.

PetroGlobal News reports the PIPC will have a 300 MBOPD refining capacity, 5 million cubic meters crude oil and LNG storage capacity and a co-generation plant connected to Malaysia’s national power grid. The complex will house oil refineries, naphtha crackers, a petrochemical plant, an LNG import terminal and regasification plant, and a gas pipeline.

The proposed refinery will supply naphtha and liquid petroleum gas feedstock for the RAPID petrochemical complex, as well as produce gasoline and diesel that meet European specifications, according to EPC Engineer. The petrochemical units will upgrade the olefinic streams coming from the RAPID steam cracker by producing various merchant grades of petrochemical products such as polyethylene, polypropylene, synthetic rubbers and other petrochemicals products, EPC said.

Petronas expects the refinery to start up in 2019.

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Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.