Press Releases

Petroleum complex on track

04 November 2014 - The Star

KOTA TINGGI: The multi-billion ringgit Pengerang Integrated Petroleum Complex (PIPC) will take shape as planned and be operational by 2019.

State Public Works, Rural and Regional Development chairman Datuk Hasni Mohammad said both the Federal and Johor governments would give their full commitment to ensure the project's success. He said 30 separate infrastructure and public amenities projects to support the development of the PIPC and to cater to the existing and future community needs were underway.

"PIPC is the catalyst that will transform Johor into a new regional oil and gas (O&G) hub in the coming years and position the state as the Rotterdam of Asia," Hasni added.

He was speaking at the ground-breaking ceremony of Pengerang Co¬generation Plant (PCP), to be built by a consortium made up of Siemens AG, Siemens Malaysia and MMC Engineering Sdn Bhd.

Also present at the event yesterday were Siemens AG power and gas division chief executive officer (CEO) Dr Roland Fischer and Petronas chief operating officer and executive vice-president and CEO downstream Datuk Wan Zulkiflee Wan Ariffin.

Costing around RM5bil, the PCP will have four co-generation units expected to be commercially operational by the middle of 2017 and the remaining three by 2019.

It is expected to power the entire complex by generating 1.220MW of electricity and provide reliable and continuous supply of steam up to 1,480 tonnes hourly for plants within the complex.

"The construction of PIPC, will see an estimated investment of RM170bil and is expected to boost Malaysia's gross national income by an additional RM20bil by 2020,"said Hasni.

PIPC is the largest petrochemical complex in Malaysia to-date and is located on 8,093ha. He said the project would house oil refineries, naphtha cracker, petrochemical plants as well as a liquefied natural gas import terminal and regasification plant.

Hasni said RM800mil would be allocated to lay 77km of pipes from the Sungai Seluyut Dam to PIPC to supply raw water to the complex.

Another RM800mil would be spend to upgrade Route 90 and Route 92 roads, from dual-lane roads to four lanes ones, connecting the PIPC from other parts of Johor.

"The upgrading of the roads is important as it will improve connectivity and accessibility to Pengerang and facilitate traffic movements in the area," added Hasni.

Meanwhile, Petronas vice¬president, infrastructure and utilities Pramod Kumar Karanukaran said several new contracts would be awarded soon.

He declined to elaborate.
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