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US$1.3b investment boost for Petronas Rapid project

KUALA LUMPUR: A consortium of CTCI Corp, Chiyoda Corp and three Malaysian companies is expected to  invest some US$1.3 billion (RM4.2 billion) for the development of its residue fluid catalytic cracking (RFCC) project  in Johor.

The RFCC project is part of Petroliam Nasional Bhd’s (Petronas) Refinery and Petrochemicals Integrated  Development (Rapid) project in Pengerang, Johor.

It is the first package among the four packages in the refinery, including a 140,000 barrels  per stream day (bpsd) RFCC, a 65,000 BPSD LPG treatment unit (LTU) and a 65,000 bpsd propylene recovery  unit (PRU), according to Chiyoda.

“The contract value for the consortium’s RFCC project is about US$1.3 billion,” the company said in a  statement posted on its website last Friday.

Last month, Petronas announced the award of 11 major contracts for its Pengerang  Integrated Petroleum Complex (PIPC), of which Rapid is a part.

Of the total contracts awarded, five of them were Engineering, Procurement, Construction and Commissioning (EPCC) contracts for the refinery and steam cracker  component of the project, including the one awarded to the consortium of CTCI, Chiyoda and the three  Malaysian companies for the RFCC units, LTU, PRU and caustic neutralisation units.

However, Petronas did not disclose the value of those 11 contracts awarded to the respective winners.

China’ Sinopec has confirmed that it has signed an EPCC package contract of Rapid project with Petronas Refinery and Petrochemical Corporation,  a subsidiary of Petronas.

Rapid, Petronas’ colossal development, with its  associated facilities are housed on a 2,496 hectare site in the Johor’s PIPC, which is a key component of  Malaysia’s Economic Transformation Programme aimed at establishing new engines of growth for Malaysia.

The Petronas project will involve an estimated investment of US$27 billion and is poised for a start-up of its refinery by  early 2019.

According to a statement seen by the Business Times, CTCI is the largest engineering, procurement and construction company in Taiwan, of which Chiyoda holds about 10 per cent of CTCI’s total issued shares.

Yokohama-based Chiyoda completed Petronas’ Melaka refinery in 1998 and has helped  to design and construct 22 fluid catalytic crack ing/RFCC units globally.

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