Malaysia’s PETRONAS on track to settle RAPID venture - Bernama

06 April 2012 03:45  [Source: ICIS news]

SINGAPORE (ICIS)--Malaysia’s PETRONAS is on track to finalise the investment plan for its new $20bn (€15.4bn) integrated refinery and petrochemicals complex at Pengerang in southern Johor in the middle of 2013, state-run news agency Bernama said on Friday.

The oil and gas major completed a detailed study on the complex, dubbed RAPID (Refinery and Petrochemicals Integrated Development), in October last year, and has made progress on “various other technical and commercial aspects” of the project, Bernama said.

The RAPID project is expected to be commissioned by the end of 2016.

The topographical survey and soil investigation work have been completed and an environmental impact assessment study is being performed, according to Bernama.

“PETRONAS is finalising the selection of potential partners and licensors for the various facilities within the project,” Bernama said.

No contracts have been tendered out or awarded apart from those pertaining to works to be done before PETRONAS finalises its investment decision in mid-2013, Bernama said.

PETRONAS will also begin “re-qualification exercises for various tender packages for the project in stages, the earliest of which was expected to be held in the third quarter of this year”, Bernama added.

The proposed refinery at RAPID will have a capacity of 300,000 bbl/day and will supply naphtha and liquified petroleum gas (LPG) feedstock for the petrochemical complex.

In addition, it will produce gasoline and diesel that meet European specifications.

RAPID will also feature a host of specialty chemical facilities making products such as isononanol, highly reactive polyisobutylene, non-ionic surfactants, methanesulfonic acid. The complex will also have plants that will produce precursor materials.

Developed together with German chemicals major BASF, these world-scale facilities will become an integral part of the RAPID project. BASF will own a 60% share in the joint venture, and PETRONAS will hold the remaining 40%.

French firm Technip was awarded the front-end engineering design contract for the project in March this year.

The contract is expected to be completed in the second “semester” of 2013, said Technip.

PETTRONAS could not be immediately reached for comment.

($1 = €0.77)

By: Nurluqman Suratman

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