The Star Online 
Business News, 11th August 2014

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) is moving on a steady course forward for its colossal project, the Pengerang Integrated Complex (PIC) in Johor, with the recent award of 11 major contracts.

The contracts were part of PIC's critical milestone requirements, demonstrating Petronas’ commitment to the successful development of PIC, the company said in a statement.

The PIC development comprises of the Refinery and Petrochemical Integrated Development (Rapid) complex and its associated facilities including the Pengerang co-generation plant, re-gasification terminal 2, air separation unit, raw water supply project as well as crude and product tanks.

Developed within a 6,242-acre site in Pengerang, Johor, PIC forms part of the Johor state’s Pengerang Integrated Petroleum Complex (PIPC).

It comes under Malaysia's Economic Transformation Programme to establish new engines of growth for Malaysia while meeting future energy requirement and strengthening Petronas' position as a key player in the Asian chemicals market, focusing on differentiated and specialty chemicals.

Rapid is estimated to cost US$16bil while the associated facilities will involve an investment of about US$11bil. PIC was poised for its refinery start-up by early 2019, said Petronas.

Of the total contracts awarded, five are engineering, procurement, construction and commissioning (EPCC) contracts for the refinery and steam cracker component of the project.

The component involves the production of petroleum products and the feedstock for the downstream petrochemical plants that are to be developed within the complex.

The EPCC contracts were awarded to:

·Consortium of CTCI Corp, Chiyoda Corp, Synerlitz (M) Sdn Bhd and MIE Industrial Sdn Bhd for the residue fluid catalytic cracking units, liquefied petroleum gas treating unit, propylene recovery unit and caustic neutralisation units;

·Sinopec Engineering (Group) Co Ltd and Sinopec Engineering Group (M) Sdn Bhd for the crude distillation unit, atmospheric residue desulphurisation units and hydrogen collection and distribution units;

·Técnicas Reunidas S.A. and Técnicas Reunidas Malaysia Sdn Bhd for the kerosene hydrotreating unit, diesel hydrotreating unit, naphtha hydrotreating unit, cracked naphtha hydrotreating unit, continuous catalytic reformer units;

·Petrofac International (UAE) LLC and Petrofac E&C Sdn Bhd for the amine recovery units, sulphur recovery units, sour water stripping units, liquid sulphur storage unit and sulphur solidification units; and

·Toyo Engineering Corp and Toyo Engineering & Construction Sdn Bhd for the steam cracker complex.

Meanwhile, the other six contracts for infrastructures constructions were awarded to:

· UEM Builders Bhd–Projek Penyelenggaraan Lebuhraya Bhd consortium for the EPCC of temporary common camp facilities and infrastructure;

·Zelan Construction Sdn Bhd for the basic design, detail engineering, procurement, construction and commissioning of the material off-loading facilities jetty at Tanjung Setapa;

·WCT Bhd for the common construction access and permanent roads within the project site;

·Syarikat Ismail Ibrahim Sdn Bhd for the temporary access road within project site;

·Bumi Dagang Sdn Bhd for the haulage road and construction of an access road outside the project site; and

·Gadang Engineering (M) Sdn Bhd and Menta Construction Sdn Bhd for the Phase 2 site preparation works.

Earlier contracts awarded include the programme panagement consultancy (PMC) contract for specific EPCC Packages within Rapid and for the overall project and site management, awarded to the Technip-Fluor consortium in June 2014.

An EPCC contract and long-term service agreement for the Pengerang cogeneration plant was signed on June 5, 2014 with the Consortium of Siemens AG, Siemens Malaysia Sdn Bhd and MMC Engineering Services Sdn Bhd.

PMC contract will include overall project and site management of the Rapid project and provision of project management services for specific EPCC Packages within Rapid throughout the pre-award, engineering and procurement, construction and commissioning as well as warranty management and close-out phases.

In April, two procurement, construction and commissioning (PCC) contracts were awarded for the PIC projects.

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