Petronas has signed a heads of agreement (HOA) with Itochu to develop a new project within its Refinery and Petrochemical Integrated Development (RAPID) project in Pengerang in Johor, Malaysia.
Petronas has also signed an HOA with Itochu and PTT Global Chemical to jointly own, develop, construct and operate a separate complex to produce downstream chemicals, including oil and petrochemicals.
Petronas noted that it will be the majority equity holder in both of the proposed joint ventures, which will be part of the facilities to be developed within the RM60bn ($19.45bn) RAPID complex.
The RAPID complex will have the capacity to refine 300,000bpd of imported crude oil, supply feedstock for the petrochemical complex and produce gasoline and diesel.
Apart from an oil refinery, the RAPID project is also comprised of a naphtha cracker which will produce about three million tons of ethylene, propylene, C4 and C5 olefins a year.
Petronas earlier signed an HOA with BASF to jointly own, develop, construct and operate production facilities for specialty chemicals and plants for precursor materials within the RAPID complex.
The RAPID project, which aims to capitalise on the growing need for specialty chemicals and meet demands for petroleum and commodity petrochemical products in the Asia Pacific region, is expected to start operations by the end of 2016.