As of January 2013, two major catalytic projects have been committed within the PIPC area, namely Petronas’ RM60 billion Refinery and Petrochemical Integrated Development (RAPID) Project and a joint-venture between dialog Malaysia and Royal Vopak of Netherlands for the RM5 billion Pengerang Independent Deepwater Petroleum Terminal (PIDPT).
PIDPT is a joint-venture between DIALOG Group of Malaysia, Royal Vopak of Netherlands and Johor State Secretary Incorporated (SSI). The total storage capacity available at PIDPT is planned for five million cubic metres by the year 2020. The RAPID project, located at Pengerang in Johor, is expected to begin operations in the first quarter of 2019. RAPID will contain a 300,000 barrel-per-day oil refinery and a petrochemical complex with a production capacity of 7.7 million metric tonnes.
Under Malaysia’s Economic Transformation Program (ETP) for oil, gas and energy, the development of downstream oil & gas services in Johor is part of Entry Point Projects 4 (EPP 4) whereby the government is striving to transform Malaysia into a regional oil storage and trading hub; leveraging on key attributes such as proximity to Singapore, availability of large tacts of land and the presence of natural deepwater. Meanwhile, EPP13 aims at increasing the petrochemical output of Malaysia.
Pengerang Integrated Petroleum Complex (PIPC) consists of multi-billion ringgit project encompassing an area of over 20,000 acres in Pengerang, Johor.
RAPID will comprise a crude oil refinery with a capacity of 300,000 barrels per day, a naphtha cracker with annual production capacity of 3 million tonnes and a petrochemical and polymer complex.
Malaysia's Prime Minister Najib Razak announced on Monday that Saudi Arabia's state oil company Saudi Aramco will invest $7 billion (5.6 billion pounds) into an oil refinery and petrochemical project in Malaysia's southern state of Johor.
Aramco will buy a stake in RAPID's refinery, cracker and petrochemical operations and will also supply at least 50 percent of the crude that will be processed at RAPID, with an option to increase the supply.
The complex supported by associated facilities such as LNG regasification plant, power generation plant, air separation unit, dedicated storage terminal and raw water supply project.
RAPID will produce high-value and high-demand products and by-products, such as polymers, pharmaceutical products and plastics, from refined feedstock. Producing these products locally and on a larger scale, RAPID will generate greater value and investments within the Malaysian and regional oil and gas sectors.