Petronas has launched an RM60bn ($19.45bn) refinery and petrochemical integrated development (RAPID) project in Pengerang, Johor, Malaysia.
The proposed refinery, with a capacity to refine 300,000bpd of imported crude oil, will supply feedstock for the petrochemical complex, as well as produce gasoline and diesel.
The petrochemical component of the project will enable the company to expand its product portfolio from commodity petrochemicals to premium differentiated and specialty chemicals in the Asia-Pacific region.
Apart from an oil refinery, the project is also comprised of a naphtha cracker which will produce about three million tons of ethylene, propylene, C4 and C5 olefins a year.
The company is also developing a new liquefied natural gas (LNG) receiving and re-gasification terminal and a co-generation power plant, in order to support the development of the RAPID project.
RAPID, in addition to other Petronas projects, will be developed and implemented according to international regulatory standards, as well as Malaysia's Department of Environment (DOE) and Department of Occupational Safety and Health (DOSH) standards.
The project has the potential to create multiple economic spin-offs for the oil and gas industry, develop downstream manufacturing industries, spur township development and infrastructures and provide new employment opportunities in the country, according to Petronas.
Implementation of the RAPID project is expected to start by mid-2013, following the company's final investment decision.