Malaysia’s national oil company, Petroliam Nasional Bhd (Petronas) is reportedly planning to partner Saudi Arabian Oil Company (Aramco) to build a refinery and steam cracker complex integral to the MYR60 billion Refinery and Petrochemical Integrated Development (RAPID) project in Pengerang, south Johor of Malaysia.
The Edge Malaysia Weekly reported, quoting sources, that the preliminary plan shows that the cost of the refinery and steam cracker plant is likely to be in the region of $12 billion.
Petronas and Aramco are said to have firmed up an agreement earlier this year to facilitate the massive development, the weekly reported.
Under the partnership, Petronas Refinery and Petrochemical Corp Sdn Bhd, a wholly-owned subsidiary of Petronas, is likely to join forces with a Aramco unit for the refinery job.
Another Aramco unit could tie up with a Petronas arm, likely Petronas Chemicals Group Bhd (PetChem), for the development of the steam cracker complex.
Petronas owns 64.35 per cent equity interest in PetChem, which is public listed.
The refinery will have the capacity to process 300,000 barrels per day (bpd) of crude oil and a steam cracker plant with an annual capacity of more than three million tonnes of petrochemicals. It is understood that a significant portion of the production from the steam cracker complex will be sold as feedstock to the surrounding Pengerang plants.