What’s the deal in RAPID?

April 15, 2017

Dateline 2017-03-04, The Star:

Tan Sri Shamsul Azhar Abbas, then president and CEO of Petroliam Nasional Bhd (Petronas), played host to several key personnel from Saudi Arabia’s state-owned oil company Aramco when they visited Malaysia.

He hired several helicopters, taking the group to get an aerial view of the upcoming 22,000-acre Pengerang Integrated Petroleum Complex (PIPC) in Johor in the hope of convincing them about the huge potential of the development.

According to an industry insider, Shamsul was hoping to replicate the business model adopted by Canada’s oil giant Progress Energy Resources Corp – which is famed for having a successful strategy in diversifying risk and improving the viability of its projects by paring down stakes in its 100%-owned projects to other significant oil players – on Petronas’ projects in Pengerang.

So, after showering the Aramco’s people with some Malaysian hospitality, the insider says, Shamsul began to share his vision for Petronas’ Refinery and Petrochemical Integrated Development, or Rapid, project.

Malaysia’s Petronas says RAPID project on track for 2019 start-up

February 26, 2017

Dateline 2017-01-26, Yahoo! Finance:

Malaysia’s state oil firm Petroliam Nasional Berhad said on Thursday its new $27 billion refining and petrochemical complex project in the southeast Asian country is on track for start-up in 2019.

Sources familiar with the matter told Reuters on Wednesday that Saudi Aramco had shelved its plans for a partnership with the company, known as Petronas, on the Refinery and Petrochemical Integrated Development (RAPID) project, raising questions about its future.

RAPID, located within the Pengerang Integrated Complex in the southern Malaysian state of Johor, is designed to have a 300,000-barrel-per-day oil refinery and a petrochemical complex with a production capacity of 7.7 million metric tonnes.


M’sia Still Preferred For Oil & Gas Industries

April 19, 2016

What technical symposium?

Dateline 2016-03-01, Malaysia Digest:

Malaysia remains a preferred location for business operations, especially in the petrochemical and oil & gas (O&G) related industries.

This is despite facing global headwinds, said Malaysian Investment Development Authority (Mida) Chief Executive Officer Azman Mahmud.

He said Malaysia had the infrastructure for these industries and was still fundamentally strong with the economy expected to grow between 4.0% and 4.5% this year.

“With the implementation of the Pengerang Integrated Petroleum Complex and the Petronas Refinery and Petrochemical Integrated Development project, Malaysia has now been placed on the world map for building opportunities for growth in this ecosystem,” he told reporters after officiating the Schmidt + Clemens Group Technical Symposium here today.

Schmidt + Clemens is a producer of special steel components and a supplier of services for plant operators and mechanical equipment manufacturers.

The company has invested more than 14 million euros in a new production plant at the Sendayan Tech Valley in Seremban, while planning to add a few more machines this year.

‘Investors should focus on downstream O&G’

January 24, 2016

I’ve been saying this since mid-Nov 2015. Maybe not in Malaysia, though.

Dateline 2015-12-22, Borneo Post:

Although the upstream sub-segment of the oil and gas (O&G) value chain remains depressed as exploration and production (E&P) capex are being reduced by many major oil producers, Malaysia’s downstream sub-segment industry is expected to remain robust.

MIDF Amanah Investment Bank Bhd (MIDF Research) said moving into 2016 and into 2017, works and activity levels at the RM90 billion Refinery and Petrochemical Integrated Development (RAPID) Project within the Pengerang Integrated Petroleum Complex (PIPC) are expected to be at its peak.

“As such, key beneficiaries are oil and gas companies which have downstream specialties such as KNM Group Berhad and Muhibbah Engineering Berhad,” it detailled in a report yesterday.

“Channel checks indicate that there could be a possibility of reallocation of staff by Petronas towards its downstream segments to prepare for the commencement of RAPID in Pengerang by 2019.

AmResearch optimistic of Petronas Gas

January 2, 2015

Dateline 2014-11-06, Yahoo News:

AMRESEARCH expects Petronas Gas Bhd to reach a final investment decision (FID) on the Pengerang liquefied natural gas regasification terminal (RGT) by the end of the year, following Petronas’ FID for the Refinery and Petrochemical Integrated Development (Rapid).

AmResearch’s optimism is hinged on the fact that Petronas Gas will likely hold the controlling equity stake in the RGT while its other partners, possibly Dialog and Vopak, will have the remaining stake.

AmResearch is sticking to its “hold” call on Petronas Gas with an unchanged fair value of RM24.40 per share, implying a 2015 price to earnings ratio of 27 times.


Petronas awards Petrofac USD 500m RAPID refinery contract in Malaysia

October 28, 2014

Gotta get in bed with Petrofac E&C. But weren’t they disbanded, and sucked into Petrofac-RNZ? Dateline 2014-08-13, Oil & Gas Technology:

Petrofac has been awarded an engineering, procurement, construction and commissioning (EPCC) contract by PRPC Refinery and Cracker Sdn. Bhd. a subsidiary under the Petroliam Nasional Berhad (Petronas) group, Malaysia’s national oil and gas company; for a refinery package in Petronas’ Refinery and Petrochemicals Integrated Development (RAPID) project in Pengerang, Johor, Malaysia

Petronas awards Petrofac USD 500m RAPID refinery contract in Malaysia

Located in Pengerang, within the state of Johor, Malaysia; Petronas’ RAPID project is by far the largest liquid-based green-field downstream undertaking in Malaysia

Worth more than USD 500m, the competitively tendered lump-sum EPCC scope of work includes three sulphur recovery units, two amine regeneration units, two sour water stripping units, a liquid sulphur storage units and a sulphur solidification package unit.


Petronas details RAPID project contract awards

October 24, 2014

I don’t see IGL’s name here… Dateline 2014-08-11, Oil & Gas Journal:

Malaysia’s state-owned Petronas has confirmed the award of 11 major contracts related to critical milestones in the development of its refinery and petrochemical integrated development (RAPID) complex at Pengerang in southeastern Johor, Malaysia (OGJ Online, May 13, 2011).

Five of the contracts are for engineering, procurement, construction, and commissioning (EPCC) for RAPID’s refinery and steam cracker component, Petronas said.

The EPCC contracts were awarded to:

  • A consortium of CTCI Corp., Chiyoda Corp., Synerlitz (Malaysia) Sdn. Bhd., and MIE Industrial Sdn. Bhd. for the residue fluid catalytic cracking units, LPG treating unit, propylene recovery unit, and caustic neutralization units.
  • Sinopec Engineering (Group) Co. Ltd. and Sinopec Engineering Group (Malaysia) Sdn. Bhd. for the crude distillation unit, atmospheric residue desulfurization units, and hydrogen collection and distribution units (OGJ Online, Aug. 7, 2014).

PIPC supporters say it’s on track to become ‘Rotterdam of the East’

September 13, 2014

Dateline 2014-06-30, Malaysia Chronicle:

CONTRARY to what detractors say, the Pengerang Integrated Petroleum Complex (PIPC) in Johor is alive and kicking, and on track to become the “Rotterdam of the East”.

Rotterdam of the Netherlands is the world’s largest petroleum and gas hub, followed by Houston in the United States and Singapore.

Almost the size of Singapore, Pengerang, located at the most southeastern tip of Peninsular Malaysia, houses the sprawling 8,000ha PIPC, which is set to become the region’s oil and gas (O&G) hub and promises to provide some 70,000 jobs to locals.

Rapid investment may top US$50b

May 2, 2014

NST, dateline 2014-03-24:

Mida confident that investment outlook on O&G sector will remain positive.

INVESTMENTS at the Refinery and Petrochemical Integrated Development (Rapid) project in Pengerang, Johor, could top US$50 billion (RM165 billion) by 2020, 150 per cent more than the initial
target of US$20 billion.

Malaysian Investment Development Authority (Mida) said Pengerang will serve as catalyst for development in areas such as refinery, petrochemicals, power, naptha cracker and regasification plants, as well as crude oil storage and liquefied natural gas storage tanks.

Malaysian oil services firms tumble after Petronas project delay

September 24, 2013

Dateline 2013-07-31, Reuters:

Investors sold off shares in Malaysian oil and gas services firms after Reuters reported state-owned Petronas will start a planned $19 billion petrochemicals complex in 2018, signalling a delay in awarding work contracts for the massive project.

Malaysia’s top ten oil and gas services firms by market capitalisation have been popular with investors this year, soaring an average 55 percent so far, well ahead of the local bourse’s 5.2 percent gain.

News of a further delay to the refinery and special chemicals project took some wind out of the sector, which has been expanding rapidly to capture regional deepwater exploration and production jobs and benefit from Petronas’ $93 billion capital spending in 2011-2015.