Media ININ Economy We Trust
Media In / Riyadh March 28, 2018
Saudi Aramco and Petroleum Nacional Berhad (Petronas), the Malaysian National Oil Company, have announced two new joint ventures to establish an integrated petrochemical refinery and complex in Malaysia. The partnership is a strategic alliance of resources, technology, expertise and excellent commercial presence of two oil companies The largest and most successful national centers around the world.
The two joint ventures also allow the parties to own and participate equally in the refinery, cracking unit and selected petrochemical facilities that are part of the refinery and petrochemical complex within the integrated Binghirang Complex in Johor, southern Malaysia.
Under this partnership, Saudi Aramco will provide 50% of the refinery’s crude oil needs, with the possibility of raising this to 70%. Petronas and its associated companies will supply natural gas, electricity and other benefits to the refinery. The parties will also share the rights to sell and purchase the two project products in equal shares.
The refinery, which has a refining capacity of 300,000 barrels per day, will produce a number of refined petroleum products such as gasoline and diesel and meet the Euro 5 fuel specification. The refinery will also supply the required petrochemical complex with a production capacity of 3.3 million tons per year of petrochemical products.
The completion of the project has so far reached 87%. The development of the integrated Bnghirang Complex is in line with the plan to start the refinery in the first quarter of 2019.
Saudi Aramco’s Supreme Vice President for Refining, Processing and Marketing Abdulaziz Al-Qadimi said the agreement strengthens Aramco’s position and growth in South East Asia through the supply of crude oil, refining, processing and marketing.
This agreement is in line with the company’s strategy for refining, processing and marketing. We invest in refining and petrochemicals through a global group of manufacturing complexes In different strategic locations with a refining capacity of between eight and ten million barrels per day, “adding that the partnership with Petronas will pave the way for many opportunities for future cooperation between the two companies.
“Petronas is proud of its presence at the integrated Binghirang Complex,” said Datuk Mohammed Arif Mahmood, Petronas’ Executive Vice President and Chief Executive Officer, Petronas. “The construction works on the project are moving rapidly and are approaching the launch stage this year.
