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Petronas and Saudi Aramco announce formation of their 2 new joint ventures in Malaysia
29 March 2018 , 12:06Neftegaz.RU601
Kuala Lumpur, 29 March - Neftegaz.RU. Petronas, the national oil company of Malaysia, and Saudi Aramco, the national oil company of Saudi Arabia, announced the formation of 2 joint ventures for the RAPID project.
These strategic alliance allow the parties equal ownership and participation in the operations of the new refinery and selected petrochemical facility, which is part of the Refinery and Petrochemicals Development (RAPID) project within Pengerang Integrated Complex (PIC) in Malaysia’s southern state of Johor.
Through this collaboration, Saudi Aramco will supply 50 % of the refinery’s crude feedstock requirements with the option of increasing 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.
The refinery, which has a capacity of 300,000 barrels of crude per day, 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 tonnes per annum of petrochemical products.
Currently 87 % completed, the RAPID project is on track for refinery start-up in Q1 2019.
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