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.
Prime Minister Datuk Seri
Najib Tun Razak confirmed this, following a StarBiz 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 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