Press Releases

Petronas PIC forges ahead with contract awards

11 August 2014 - Bernama

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

According to a press statement, these contracts are part of PIC’s critical milestone requirements, demonstrating Petronas’ commitment to the successful development of PIC.

The PIC development comprises of the Refinery and Petrochemical Integrated Development (Rapid) 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) as well as Crude and Product Tanks


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 statement said, Petronas had awarded the EPCC contracts to Consortium of CTCI Corporation, Chiyoda Corporation, Synerlitz (Malaysia) Sdn Bhd and MIE Industrial Sdn Bhd, Sinopec Engineering (Group) Co Ltd and Sinopec Engineering Group (Malaysia) Sdn Bhd, Técnicas Reunidas SA and Técnicas Reunidas Malaysia Sdn Bhd, Petrofac International (UAE) LLC and Petrofac E&C Sdn Bhd, and Toyo Engineering Corporation and Toyo Engineering & Construction Sdn Bhd.

Another six contracts for infrastructures constructions, were awarded to UEM Builders Bhd – Projek Penyelenggaraan Lebuhraya Bhd Consortium, Zelan Construction Sdn Bhd, WCT Bhd, Syarikat Ismail Ibrahim Sdn Bhd, Bumi Dagang Sdn Bhd, and Gadang Engineering (M) Sdn Bhd and Menta Construction Sdn Bhd.

Earlier contracts awarded included the Programme Management 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 (LTSA) 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 Raw Water Supply Project (PAMER), to supply raw water to PIC; whilst the PCC contract for Pengerang Gas Pipeline Project contract was awarded to PBJV/CPM.

Developed within a 6,242-acre site in Pengerang, Johor, PIC forms part of the Johor State’s Pengerang Integrated Petroleum Complex (PIPC), which is under Malaysia’s Economic Transformation Programme (ETP) to establish new engines of growth for Malaysia.

This development is also expected 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 while the associated facilities will involve an investment of about US$11 billion. PIC is poised for its refinery start-up by early 2019.
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