A supertanker carrying the first crude oil cargo has begun to discharge at the US$16bn Refinery and Petrochemical Integrated Development (RAPID) project in the Malaysian state of Johor. The refinery project is nearing completion and is entering the commissioning and testing phase. Refining operations are set to begin in 2019 and petrochemical production will begin 6 to 12 months later.
RAPID consists of a 300,000 bbl/d refinery and a petrochemical complex with a combined capacity of 3.3 Mt/year of various grades of products, including differentiated and specialty chemical products (synthetic rubbers and high-grade polymers). The project is part of Petronas' Pengerang Integrated Petroleum Complex (PIPC), estimated at US$27bn.
In March 2018, Saudi Arabia's national oil company Saudi Aramco and its Malaysian counterpart Petroliam Nasional Berhad (Petronas) formed two joint ventures (JVs) for the RAPID project, in which both companies have an equal ownership. Saudi Aramco has committed to provide 50% of the crude oil feedstock required for the operations, with the option of increasing it to 70%. Petronas is in charge of supplying gas and power to the refinery. The parties also share the rights to offtake the production of the joint ventures on an equal basis.
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