Petronas has signed two Heads of Agreement (HOAs) towards the formation of two separate petrochemical joint ventures within its proposed Refinery and Petrochemical Integrated Development (RAPID) complex in Pengerang, Johor.
The first HOA was signed with Itochu Corporation, while the second HOA was sealed with Itochu Corporation and PTT Global Chemical Public Company Limited; to jointly own, develop, construct and operate two separate complexes for the production of high value-added downstream chemicals. PETRONAS will be the majority equity holder in both of the proposed joint ventures which will be part of the world-scale facilities to be developed within the RM60-billion RAPID complex.
With today’s HOAs, Petronas has to date signed three of such arrangements for RAPID. Prior to this, Petronas signed a HOA with BASF for the production of specialty chemicals in RAPID. Petronas is currently finalising the selection of other potential partners and licensors for the various facilities within RAPID. The proposed RAPID project is so far the largest liquid-based greenfield downstream undertaking in Malaysia. It will have a 300,000 bpd refinery to supply the petrochemical complex, apart from producing a host of refined petroleum products, including gasoline and diesel that meet the Euro 4 and Euro 5 fuel specifications.