Petronas Secures Two More Potential Partners For Petrochemical Ventures In Rapid
​PETRONAS recently 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.
The HOAs were signed in Kuala Lumpur today. PETRONAS was represented by its Chief Operating Officer Datuk Wan Zulkiflee Wan Ariffin, who is also PETRONAS’ Executive Vice President for Downstream Business. ITOCHU Corporation was represented by its Managing Executive Officer and President of the Energy and Chemicals Company Mr. Yuji Fukuda while PTT Global Chemical was represented by its Chief Executive Officer Mr. Anon Sirisaengtaksin.
Both ITOCHU Corporation and PTT Global Chemical bring to the partnerships excellent proven track records and a wealth of experience and expertise that would significantly contribute towards strengthening PETRONAS and Malaysia’s position as a key downstream player in the region.
Headquartered in Tokyo and Osaka, ITOCHU Corporation is a global trading company with about 130 bases in 66 countries. With an extensive network of affiliates around the world, it is engaged in the trading and marketing of various products including chemical products, as well as in investments in strategic sectors including petrochemical business. Its shares are listed on the Tokyo, Osaka, Nagoya, Fukuoka, and Sapporo stock exchanges.
PTT Global Chemical is Thailand’s largest integrated petrochemical and refining company and is the chemical flagship of the PTT Group. It is an affiliate of PTT Public Company Limited, Thailand‘s listed state-owned Fortune Global 500 company. PTT Global Chemical’s shares are traded on the Bangkok Stock Exchange.
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 barrels per day 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.
The petrochemical component of the project will allow PETRONAS to expand its products portfolio from commodity petrochemicals to premium differentiated and specialty chemicals, capitalising on the growing demand for these higher value products in the Asia Pacific region.
SOURCE: PETRONAS