Petronas forges ahead with contract awards for Pengerang Complex PIPC

KUALA LUMPUR, Aug 10 — Petroliam Nasional Bhd (Petronas) is moving on a steady course forward for its Pengerang Integrated Complex (PIC) project in Johor with the recent award of eleven major contracts.

In a statement today, the national oil and gas company said the contracts were part of PIC’s critical milestone requirements, demonstrating Petronas’ commitment to the successful development of the complex.

The PIC development comprises: refinery and petrochemical integrated development complex and its associated facilities including the Pengerang Co-generation Plant (PCP), re-gasification terminal 2 (RGT2), air separation unit (ASU), raw water supply project (PAMER) and crude and product tanks (SPV2).

Petronas said of the total, five were engineering, procurement, construction and commissioning (EPCC) contracts for the refinery and steam cracker component of the project.

It said the the component involved the production of petroleum products and the feedstock for the downstream petrochemical plants that were to be developed within the complex.

The EPCC contracts were awarded to a consortium of CTCI Corp, Chiyoda Corp, Synerlitz (M) Sdn Bhd and MIE Industrial Sdn Bhd for the residue fluid atalytic cracking (RFCC) units, LPG treating unit (LTU), propylene recovery unit (PRU) and caustic neutralisation units (CNU).

Sinopec Engineering (Group) Co Ltd and Sinopec Engineering Group (M) Sdn Bhd received the contracts for the crude distillation unit (CDU), atmospheric residue desulphurisation (ARDS) units and hydrogen collection and distribution units (HCDU).

Técnicas Reunidas S.A. and Técnicas Reunidas Malaysia Sdn Bhd were awarded the contracts for the kerosene hydrotreating (KHT) unit, diesel hydrotreating (DHT) unit, naphtha hydrotreating (NHT) unit, cracked naphtha hydrotreating (CNHT) unit, continuous catalytic reformer (CCR) units.

Petrofac International (UAE) LLC and Petrofac E&C Sdn Bhd received the contracts for the amine recovery uits (ARU), sulphur recovery units (SRU), sour water stripping units (SWSU), liquid sulphur storage unit (LSSU) and sulphur solidification units (SSU).

Toyo Engineering Corp and Toyo Engineering & Construction Sdn Bhd were awarded the contract for the steam cracker complex.

The other six contracts for infrastructure construction were awarded to UEM Builders Bhd–Projek Penyelenggaraan Lebuhraya Bhd Consortium for the temporary common camp facilities and infrastructure.

Zelan Construction Sdn Bhd received the contract for the basic design, detail EPCC (BEPCC) of the material off loading facilities (MOLF) jetty at Tanjung Setapa.

WCT Bhd was awarded a contract for the common construction access and permanent roads within project site and Syarikat Ismail Ibrahim Sdn Bhd for the temporary access road within project site.

Others included 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.

According to PETRONAS, the earlier contracts awarded included the programme management consultancy (PMC) contract for specific EPCC packages within RAPID and for the overall project and site management was awarded to the Technip-Fluor consortium in June 2014.

An EPCC contract and long-term service agreement for the Pengerang Cogeneration Plant (PCP) 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 2014, two procurement, construction and commissioning (PCC) contracts were awarded for the PIC projects.

Konsortium Asia Baru-PPC JV signed the PCC with Petronas for the contract to supply raw water to PIC while the PCC contract for Pengerang Gas Pipeline Project contract was awarded to PBJV/CPM.

The PIC, developed within a 2,526-hectare site in Pengerang, Johor, forms part of the Johor State’s Pengerang Integrated Petroleum Complex (PIPC), which is under Malaysia’s Economic Transformation Programme to establish new engines of growth for Malaysia.

It also aimed to meet future energy requirement and strengthen Petronas’ position as a key player in the Asian chemicals market, focusing on differentiated and specialty chemicals.

RAPID is estimated to cost US$16 billion (RM51.3 billion) while the associated facilities will involve an investment of about US$11 billion.

PIC is poised for its refinery start-up by early 2019.

Pengerang Integrated Petroleum Complex PIPC

Pengerang Integrated Petroleum Complex PIPC


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