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Petronas and Saudi Aramco joint venture on track

Pengerang Refining and Petrochemical (PrefChem), a joint venture between Petronas and Saudi Aramco, is expected to restart a crude distillation unit at its oil refinery in Malaysia in July, three sources familiar with the matter said.

The Pengerang Refining development, which is part of Petronas’ $27 billion Pengerang Integrated Complex, consists of a 300,000 barrels-per-day (bpd) oil refinery and a petrochemical complex with a production capacity of 7.7 million tonnes per year in the southern Malaysian state of Johor.

The refinery stopped trial runs in April for safety checks after a fire occurred at the atmospheric residue desulphurisation (ARDS) unit.

Contractors are still assessing the extent of damage at the fire-hit ARDS unit and repairs could take between 3 months and two years, one of the sources said, citing initial estimates.

The CDU will be processing low-sulphur crude in the absence of the desulphurisation unit, the sources said.

By restarting the CDU in July, the refinery is working towards producing fuel that meets commercial specification by the end of the year, they said.

The project, originally known as RAPID, or Refinery and Petrochemical Integrated Development, was to resume operations by the end of this year, Petronas said in a statement last month.

Petronas and PrefChem have not responded to emailed requests for comment.

Source: Reuters

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