RM60BIL PETRONAS PROJECT WILL FUEL MASSIVE SPIN-OFFS, SAYS PM

RM60bil Petronas project will fuel massive spin-offs, says PM

KUALA LUMPUR: Petronas will invest in a major RM60bil integrated refinery and petrochemical complex in Pengerang, Johor, touted to be its largest.

To be known as the Refinery and Petrochemicals Integrated Development (Rapid) project, it is is expected to be commissioned by the end of 2016, as part of the national oil company's efforts to expand its downstream production.

In appreciation: Najib receiving the logo of the Refinery and Petrochemicals Integrated Development (Rapid) project from Petronas president and CEO Datuk Shamsul Azhar Abbas after his announcement at the Petronas headquarters in Kuala Lumpur yesterday. – AZHAR MAHFOF/The Star

Prime Minister Datuk Seri Najib Tun Razak confirmed this, following aStarBiz breaking news story on Wednesday.

The mammoth project is expected to create at least 20,000 jobs during the construction phase and 4,000 potential jobs for highly-skilled workers.

This does not include the many spin-offs in related sectors, Najib said when announcing the project at the Petronas headquarters here yesterday.

“It is truly a remarkable initiative and a significant landmark for Malaysia. The project presents Malaysia with a major vehicle to attract foreign direct investments, bolster private investment and expand the country's access to world-class technologies.

“It will also provide avenues for a new generation of technical professionals to develop their skills and capabilities,” he said, adding that the Government would provide its full support and assistance.

The Rapid project, Najib said, would consist of three main components:

> A crude oil refinery with a capacity of about 300,000 barrels per day, larger than the combined capacities of its refineries in Malacca and Kerteh.

> A naphtha cracker with the ability to produce three million tonnes of ethylene, propylene as well as C4 and C5 olefins; and

> A joint petrochemical development with a combined production capacity of three million tonnes per year, more than the combined production capacities of its integrated complexes in Kerteh and Gebeng, Pahang.

Najib, who is also Finance Minister, said although the Rapid project was not part of the entry point projects under the Economic Transformation Programme, it was still in line with plans to turn Malaysia into a leading petroleum industry hub in the region.

The area, Najib said, was chosen because of its large land acreage, strategic location near major international shipping lanes, deepwater port facilities and proximity to regional demand centres.