Pengerang Integrated Petroleum Complex

Pengerang Integrated Petroleum Complex (PIPC) is a project development in Pengerang, Kota Tinggi District, Johor, Malaysia. Strategically located at the south-east tip of Peninsular Malaysia, it offers access to existing major international shipping lanes.[1] The PIPC megaprojects spans 20,000 acres and will house oil refineries, naphtha crackers, petrochemical plants as well as a liquefied natural gas (LNG) import terminals and a regasification plant upon completion. Once materialized, PIPC is estimated to generate RM18.3 billion Gross National Income (GNI) by the year 2020 and help to create 8,600 high-income and high-skilled jobs.[2]

PIPC aims to become a regional downstream oil storage and trading hub by leveraging on its strategic port location on major shipping routes for crude oil and refined products, its proximity to Singapore (Asia’s largest oil-trading hub), land availability and deepwater marine accessibility.[3] A major strength of this hub will be its ability to complement Singapore's oil and gas storage capabilities to create a regional centre for oil and gas services. The project also aims to increase Malaysia’s petrochemical output by building a petrochemical complex in the identified strategic area. The development of PIPC, which received full support from both the state government and federal government, also benefits the local community by creating greater access to economic opportunities other than the provision of public infrastructure in Pengerang.[4] To ensure the successful development of PIPC, a dedicated Malaysian Federal Government agency known as Johor Petroleum Development Corporation Berhad (JPDC) was established. JPDC was created as a subsidiary to Malaysia Petroleum Resources Corporation (MPRC)[5]

Malaysia's Economic Transformation Programme (ETP)

Development of the PIPC is an important component of Malaysia's Economic Transformation Programme (ETP). The ETP was launched on 25 September 2010, formulated as part of Malaysia's National Transformation Programme. Its goal is to elevate the country to developed nation status by 2020, targeting GNI per capita of US$15,000. This will be achieved by attracting US$444 billion in investments which will, in turn, create 3.3 million new jobs. The focus on oil and gas projects, arising from the Economic Transformation Programme, will create a more dynamic and progressive oil and gas industry in Malaysia. Malaysian companies will be able to work with local and foreign investors to invest in new technologies, new products, as well as create countless job opportunities as several of these petrochemical projects take off in the near future.[6]

Layout Plan of PIPC

The ETP's targets for the year 2020 will be achieved through the implementation of 12 National Key Economic Areas (NKEAs), representing economic sectors which account for significant contributions to GNI. The programme is also centred on raising Malaysia's competitiveness through the implementation of six Strategic Reform Initiatives (SRIs). The SRIs comprise policies which strengthen the country's commercial environment to ensure Malaysian companies are globally competitive.

The 12 NKEAs consist of:

1) Oil, Gas and Energy 2) Palm Oil & Rubber 3) Financial services 4) Tourism 5) Business Services 6) Electronics & Electrical 7) Wholesale & Retail 8) Education 9) Healthcare 10) Communications Content and Infrastructure 11) Agriculture 12) Greater Kuala Lumpur / Klang Valley

Major Components of PIPC

The component of this mammoth project (PIPC) was first initiated with the development of the Pengerang Deepwater Terminal or PDT, a joint-venture between Dialog Group, Royal Vopak of The Netherlands and the State of Johor. Serving as a centralised storage facility for trading, refining and petrochemical industry, the Deepwater Terminal is envisioned to have a storage capacity of 5 million cubic meters. The USD3 billion facility includes an independent terminal for trading, a dedicated industrial terminal for investors within PIPC, and a Liquefied Natural Gas Terminal.[7] The construction of a deepwater jetty facility with natural water depth would enable the berthing of both ultra large crude carriers and very large crude carriers. PDT received its first shipment of oil in the first quarter of 2014 and continues to cater to the growing demand for its services.

The other component of PIPC is the Petronas Pengerang Integrated Complex (PIC) which is touted to be PETRONAS’ largest downstream investment in a single location to date.[8] The development includes the USD16 billion Refinery and Petrochemical Integrated Development Project or RAPID. This also involves the USD11 billion associated facilities: Air Separation Unit, Raw Water Supply, Cogeneration Plant, Regasification Terminal, Deepwater Terminal and Utilities and Facilities. Upon its completion in 2019, PIC will have a refining capacity of 300,000 barrels per day with petrochemical plants yielding an estimated production capacity of 3.6 million tonnes per annum of petrochemical products. PIC will create 50,000 job opportunities at the peak of its construction.[9]

Strategic Location

The development of PIPC is located at Pengerang, Kota Tinggi District, Johor, Malaysia which is a strategic location at the south-east tip of Peninsular Malaysia. It offers access to existing major international shipping lanes connecting Middle East-Singapore and China.[10] It has excellent road networks to Singapore and other major ports in the Peninsula. Its safe and sheltered harbour with a natural water depth of 24m provides perfect berthing conditions for Ultra Large Crude Carriers (ULCCs) and Very Large Crude Carriers (VLCCs). No breakwater is required with sufficient seagoing passage for ULCCs and VLCCs. Pengerang also offers availability of sufficient development land with low negative socioeconomic impact and very few Environmentally Sensitive Areas (ESAs) which are easily preserved.[11]

References

  1. ↑ "PIPC".
  2. ↑ "PIPC mampu sumbang RM18.3b menjelang 2020". BH Online. Retrieved 2016-04-26.
  3. ↑ "PIPC to become regional downstream oil storage and trading hub".
  4. ↑ Benjamin, Nelson; Phaharoradzi, Norbaiti. "PIPC a boost for Johor - Community | The Star Online". Retrieved 2016-04-26.
  5. ↑ "Pengerang Integrated Petroleum Complex (PIPC) | MPRC". www.mprc.gov.my. Retrieved 2016-04-26.
  6. ↑ "Overview of ETP". etp.pemandu.gov.my. Retrieved 2016-04-26.
  7. ↑ "Dialog Group Berhad". www.dialogasia.com. Retrieved 2016-04-26.
  8. ↑ "Petronas' largest downstream investment in a single location".
  9. ↑ "PIC projects".
  10. ↑ "Pengerang Integrated Petroleum Complex (PIPC) | MPRC". www.mprc.gov.my. Retrieved 2016-04-26.
  11. ↑ "Johor Petroleum Development Corporation Berhad (JPDC) | Pengerang Integrated Petroleum Complex (PIPC)". Johor Petroleum Development Corporation Berhad (JPDC) | Pengerang Integrated Petroleum Complex (PIPC). Retrieved 2016-04-26.
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