Mohd Haikal Mohd Isa Bernama 29 Oct 13;
JOHOR BAHARU, Oct 29 (Bernama) -- Most of the companies that have shown interest in the Pengerang Integrated Petroleum Complex (PIPC) are now adopting a wait-and-see attitude before making the final decision, according to Johor Petroleum Development Corporation Bhd (JPDC).
Its chief executive Mohd Yazid Jaafar said the potential investors involved wanted to wait for the final decision by Petronas on the Refinery and Petrochemical Integrated Development (Rapid) project before deciding on the next move.
"Based on our evaluation, the companies involved have just expressed their interest (to invest in PIPC) and not more than that. They are awaiting the final decision by Petronas whether it would continue the Rapid project or not," he told Bernama here Tuesday.
Mohd Yazid expected the national oil company to make the final decision on its mammoth investment in Rapid in March next year.
"Cost escalation (for Rapid project) is the main consideration for Petronas," he said.
Asked on the background of the potential companies interested to invest in PIPC, he said the bulk of them are service providers in the oil and gas industry.
According to previous reports, Petronas was expected to invest some RM60 billion in the Rapid project to build a refinery with a capacity of 300,000 barrels per day, a naphtha cracker and petrochemical complex.
The project will span 2,500 hectares (ha) out of the overall PIPC project covering 8,000ha.
Asked on the status of PIPC if Petronas decided not to continue with Rapid project, Mohd Yazid said PIPC has other components besides Rapid such as Pengerang Independent Deepwater Petroleum Terminal (PIDPT).
PIPC would also have facilities to carry out trading in oil products, he said.
The first phase of the PIDPT project costing RM1.9 billion, which consists of the construction of a 1.3 million litre storage facility, was more than 80 per cent complete and was expected to be fully operational in April next year, he said.
"PIDPT is expected to receive the first oil cargo vessel in April next year, to mark its operation," he said of the RM5 billion project.
The PIDPT project is being developed by local firm, Dialog Bhd with the cooperation of Royal Vopak from The Netherlands and a subsidiary of the state government, State Secretary Inc.
Apart from PIDPT, Dialog and its two partners will also build a regasification terminal at PIPC, which is estimated to cost RM4 billion.
-- BERNAMA
