Petronas in discussion with major oil companies for petrochemical plants

KUALA LUMPUR, MALAYSIA: Petronas is in talks with several global oil majors including Shell and Exxon Mobil to develop petrochemical plants within its $20 billion refinery complex in southern Malaysia. Petronas is expected to make a decision on the partnerships by mid 2012. Petronas first unveiled the Refinery and Petrochemicals Integrated Development (RAPID) project in May and has said the complex will be commissioned by end of 2016.

The RAPID project will include a 300,000 barrel per day refinery that produces naphtha, gasoline, jet fuel, diesel and fuel oil. The crude feedstock from Petronas equity projects will also be channeled into the petrochemicals and polymer complex, including a 3 million tonne per year naphtha cracker and petrochemical derivatives facility focusing on synthetic rubber. Petronas is counting on interest from Japanese firms which are looking to relocate their plants or reinvest outside their home base after the March tsunami and earthquake triggered uncertainty over future energy supply.

© Reuters News