PIPC to Boost 100,000 Jobs and Pengerang Socio Economy The construction of Pengerang Integrated Petrochemical Complex (PIPC), the largest petrochemical complex in Malaysia is expected to create over 100,000 new job opportunities throughout its development stages. The whole development of PIPC will see a total estimated investment of approximately RM120billion and is expected to boost Malaysia’s GNI by an additional RM20billion by 2020. The mega project is also projected to create close to 9,000 new job opportunities for the local population and improve Pengerang’s socio economy immensely once completed. “A balanced, sustainable and economically, as well as socially beneficial development like such will help Malaysia achieve its high income status in line with Malaysia’s Vision 2020,” says a reliable source close to the Johor State Government. At present two committed investors, Malaysia’s Dialog Group and PETRONAS have started ground work to develop their facilities at PIPC. Dialog Group Berhad, a company which is listed on the Main Board of the Malaysian Stock Exchange is currently developing its Independent Deep-Water Petroleum Terminal (IDPT) under a three-party joint venture with Dutch-based Royal Vopak and State-owned State Secretariat Incorporated. Its IDPT is being constructed in phases over 500 acres of reclaimed land and its Phase One development is expected to meet completion timeline for commissioning as early as February 2014. The RM9billion IDPT will include the construction of a 5million metric tonne petroleum storage facility which it projects will receive first oil by Q2 2014. In addition, Dialog’s IDPT will also include an LNG import terminal which it will develop under Phase Two of its master plan. Meanwhile Malaysia national oil and gas company, PETRONAS is expected to construct its RM60billion Refinery and Petrochemical Integrated Development (RAPID) complex at PIPC, which will become its largest petrochemical complex in Malaysia once completed. PETRONAS had begun site clearance in October 2012, and is scheduled to start construction for its petrochemical complex as early as Q2 2014, with an overall completion expected in Q1 2018. Its RAPID complex will be constructed over approximately 6,000 acres of land and will involve the construction of a petroleum refinery, naphtha cracker, petrochemical plants, an LNG regasification plant, a power plant and a water treatment centre. According to the source, the overall development progress of PIPC is satisfying and on schedule. However, given the magnitude and the nature of the project, minor delays on work commencement dates for certain phases of this project are not unusual. The development of PIPC, adds the source, involves interactions between the various parties involved, and at times, managing these could take additional coordination efforts. Nonetheless, the overall progress of the development is within control and the time line set, and all parties involved, especially the investors are well informed of its progress. In another development, Taiwan’s Kuokang Petrochemcial Company (KPTC) has expressed interest to set up a refinery and petrochemical complex in PIPC, to take advantage of the increasing global demand of petrochemical products. KPTC is currently in the process of conducting a feasibility study and had recently completed a Detail Environmental Impact Assessment (DEIA) study to determine whether it would be investing at PIPC, says the source. Should it decide to proceed, KPTC’s investment is expected to be within the region of approximately US$13billion, in which it plans to construct a 150,000 bdp (barrels per day) crude Naphtha Cracker. KPTC is expected to employ Best Available Control Technology (BACT) for their proposed complex to achieve the highest standard of environmental protection. “With 100% new equipment, coupled with a full waste heat recovery system, the complex will have a significantly lower carbon footprint and is expected to reduce emission significantly,” says the source, adding that with BACT employed, KPTC’s environmental protection standards will be at par with similar petrochemical plants in Europe, if not better. For the record, the Malaysian government employs strict environmental conditions and requirements that KPTC needs to comply with. Without complying with these requirements, the project will not be supported by the Government. “Malaysia has over 25 years of experience in constructing refineries in the country and the lessons learnt from running these refineries safely according to international industry standards, coupled with new technology to be used in Pengerang will ensure that the safety risk of the local population will always be on the main agenda of PIPC,” says the source. A 500-metre buffer zone, he adds, will also be provided for around PIPC and will offer the first protection for residents near the heavy industrial area. The need to maintain a buffer zone of at least 500 meters from the boundary of the project site to the nearest settlement area is in accordance with Malaysia’s DOE requirement. Placement or use of environmentally sensitive land such as housing projects, hospitals and schools will not be allowed within the buffer zone, and in the case of Pengerang, the new resettlement area is more than five kilometres away. Meanwhile the relocation of Muslim cemeteries is well in progress and is expected to be completed by August 2013. Houses for resettlement of affected villagers, namely Kampung Sg. Kapal, Kampung Teluk Empang and Kampung Langkah Baik, are currently being constructed and are expected to be completed before year-end. End.
Posted on: Thu, 13 Jun 2013 00:53:23 +0000
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