Petronas plans refinery, petchem complex near Singapore

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, May 13 -- Malaysia’s state-run Petronas reported plans to construct a $20 billion refinery and petrochemicals complex at Pengerang in southern Johor state that would raise the country’s total refining capacity to 935,300 b/d.

The development, to be called Refinery and Petrochemicals Integrated Development, or Rapid, is expected to be commissioned by yearend 2016.

The Rapid project, which is still at the detailed feasibility study stage, will comprise a 300,000-b/d refinery, a 3 million tonne/year naphtha cracker, and a petrochemical and polymer complex. The project will boost Petronas' total domestic and overseas refining capacity to 748,000 b/d and its Malaysian capacity to 623,000 b/d, the company said.

Described by Petronas as “greater in scale and scope” than its Melaka, Kertih, and Gebeng complexes combined, Rapid is expected to turn Johor into another major petroleum and petrochemical center in the region.

Some analysts, however, questioned whether such a large and costly project as Rapid would be able to a find a market.

Alex Yap, a consultant at FACTS, said the difficulty is that Asia as a whole is still oversupplied, and that moving forward, East Asia and India will continue to export heavily. Yap added that while demand in Southeast Asia is rising, there are still large exports from Thailand and Singapore.

The proposed cost is huge, even if compared with the megaprojects in the Middle East, which have larger capacities, Yap said, adding that the project can be seen as viable only as a cornerstone of the government's regional development project, and a means to eliminate Malaysia's longer-term import requirements.

Tilak Doshi, chief economist at the Energy Studies Institute in Singapore, said that if the project is aimed at high valued-added petrochemical products, then that would add something to the economics.

"If it is not, then I am stumped because you have Reliance there, a major exporter, and just around the corner one of the most efficient refining centers in Singapore,” said Doshi. “Plus you have the Vietnams and Chinas, who have refining capacity for their own domestic use."

Meanwhile, to support the development of Rapid, Petronas said it also is looking into the possibility of building an LNG receiving and regasification terminal in the area.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

Trinidad ULSD plant won’t be built in 2015, Petrotrin executive says

01/28/2015 Trinidad and Tobago’s state-owned Petrotrin has announced that its $500 million ultralow-sulfur diesel (ULSD) plant cannot be commissioned because ...

Vietnam advances Dung Quat refinery expansion plans

01/26/2015 Binh Son Refining & Petrochemical Co. Ltd. (BSR), a subsidiary of state-owned Vietnam National Oil & Gas Group (PetroVietnam), has unveiled...

OGJ Newsletter

01/26/2015

International news for oil and gas professionals

Varo Energy plans upgrades for Swiss refinery

01/23/2015 Varo Energy BV, a midstream company owned by The Carlyle Group and Vitol Group, plans to invest more than 50 million Swiss francs ($56 million) thi...

Kuwait lets contract for Mina Abdullah refinery

01/22/2015 Kuwait National Petroleum Co. (KNPC), through a subcontractor, has let a contract to Mushrif Trading & Contracting Co. for work related to its ...

Contract let for Aramco’s Jazan refinery, terminal project

01/21/2015 Saudi Aramco, through a contractor, has let a contract to Alderley FZE, Dubai, a division of Alderley PLC, Wickwar, UK, to provide metering systems...

EPA approves revisions to California’s refinery emission regulations

01/20/2015 The US Environmental Protection Agency has issued a final rule approving revisions to portions of California’s state implementation plan (SIP) that...

LyondellBasell expands roles of three senior executives

01/20/2015

LyondellBasell has expanded the roles of senior executives Timothy D. Roberts, Patrick D. Quarles, and Kevin W. Brown.

Senators introduce amendment to end corn ethanol mandate

01/20/2015 US Sens. Dianne Feinstein (D-Calif.), Patrick J. Toomey (R-Pa.), and Jeff Flake (R-Ariz.) introduced legislation to remove the corn ethanol mandate...
White Papers

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by
Available Webcasts

On Demand

Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST


The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected