Malaysia: Downstream Engineering Saudi Aramco and Petronas Join Forces for PIC Petrochemicals Project
Saudi Aramco has entered into a strategic partnership with Petronas Chemicals Group Berhad (PCG) for its petrochemicals projects within the Petronas Pengerang Integrated Complex (PIC) in the southern Malaysian state of Johor.
Dharan/Malaysia — Under the terms of the venture’s share purchase agreement (SPA), signed between PCG and Saudi Aramco’s Aramco Overseas Holding Cooperatif U.A. (AOHC) subsidiary, the parties have equal ownership in PRPC Polymers (PRPC Polymers) within PIC. The partnership is intended to provide PIC with high-impact strengths and synergies from both Saudi Aramco and PCG.
The signing of this agreement with PCG follows the signing of the SPA with PCG’s parent company Petronas during King Salman’s visit to Malaysia last February.
The agreement was signed by Saudi Aramco VP International Operations, Said Al-Hadrami and Petronas VP and PCG Managing Director / Chief Executive Officer, Datuk Sazali Hamzah.
Saudi Aramco VP International Operations, Said Al-Hadrami said: “This agreement strengthens Saudi Aramco’s position and growth in South East Asia through crude supply and world-scale downstream operations." Through this venture, the company will also achieve a high degree of integration between refining and petrochemicals, with petrochemicals production greater than 10 % of crude intake. It is also in tandem with their downstream growth strategy where the company is investing in a global refining and petrochemicals system of strategically located world-scale manufacturing complexes with participated refining capacity of several million barrels per day.
The petrochemicals projects in PIC is one of the largest growth projects for PCG and Petronas’ largest downstream investment on a single site to date. The signing of this Agreement brings together two key leaders in petrochemicals, entering into a partnership in a world-scale greenfield project.
As of August 2017, the PIC development is at about 75 % overall project progress and the first petrochemical production is expected to commence after the completion of the refinery, which is scheduled in 2019. The petrochemicals projects within the PIC are currently progressing as planned, the company announced.
Beyond 2020, PCG will also focus on assessing opportunities in downstream derivatives and specialty chemicals at Pengerang, Kertih, Gebeng and East Malaysia.