Petronas lets contract for RAPID complex

Malaysia’s state-run Petronas has let a contract to Zelan Construction Sdn. Bhd., a subsidiary of Zelan Bhd., Kuala Lampur, for the basic design, detail engineering, procurement, construction, and commissioning (EPCC) of the material offloading facilities (MOLF) jetty for Petronas’ planned refinery and petrochemical integrated development (RAPID) complex at Pengerang in southeastern Johor, Malaysia (OGJ Online, Mar. 27, 2014).

Zelan Construction’s scope of work under the EPCC contract, which is valued at about $78.3 million, is scheduled to last 18 months, Zelan said July 24 to Bursa Malaysia.

The MOLF jetty, to be built at Tanjung Setapa, will be used to handle imports of heavy-lift, oversized equipment and materials as well as some break-bulk and containerized cargo during construction and implementation of RAPID, according to Zelan.

The EPCC contract follows the completion of the MOLF’s concept design by BMT Asia-Pacific Pte. Ltd., a subsidiary of BMT Group Ltd., earlier this year.

Zelan did not indicate when it would begin construction.

With a planned capacity of 300,000 b/d, the proposed RAPID refinery will produce naphtha and liquid petroleum gas feedstock for the petrochemical complex, as well as gasoline and diesel meeting European specifications to help address Asia-Pacific’s growing need for petroleum and petrochemical products.

In addition to production units that include a naphtha steam cracker, the RAPID development will provide storage and logistics facilities for a number of dry and liquid bulk products.

Petronas plans to commission the refinery by early 2019 (OGJ Online, June 27, 2014).

Petronas estimates the RAPID refinery will cost about $16 billion, while associated installations for the project will require an investment of about $11 billion, according to an Apr. 3 news release from the company.

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