Saudi Aramco will invest US$7bn into the RAPID refinery (Refinery and Petrochemical Integrated Development) in the region of Johor (Malaysia).
In January 2017, many sources believed Saudi Aramco would withdraw from the project because of the volatile environment and the low prices. Petronas said in the meantime it would go forward regardless of Saudi Aramco's decision. Saudi Aramco eventually decided to maintain its share in the project.
The US$16bn RAPID project will consist of a 300,000 bbl/d refinery and a petrochemical complex with a combined capacity of 7.7 Mt/year of various grades of products, including differentiated and speciality chemical products (synthetic rubbers and high-grade polymers). The project is part of Petronas' Pengerang Integrated Petroleum Complex (PIPC), estimated at US$27bn. Construction works are currently 54% complete and the project is currently on track to be commissioned in 2019.
Saudi Aramco is also expected to buy a stake in the refinery and could also supply around 50% the crude that will be processed there.
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