Malaysia: Petronas to decide on Rapid's status today

SHAREN KAUR New Straits Times 3 Apr 14;

KUALA LUMPUR: The status of the RM60 billion Refinery and Petrochemicals Integrated Development (Rapid) project in Pengerang will be decided today at a board meeting, said Petroliam Nasional Bhd (Petronas) director Tan Sri Megat Najmuddin Megat Khas.

He said several matters, including project viability and profit generation for the government, will be discussed.

The Rapid project aims to secure a chunk of the US$400 billion (RM1.3 trillion) global market for speciality chemicals used in products from liquid-crystal display televisions to diapers.

"We will decide whether to go ahead, postpone it, or look at it some other time. There will be a detailed presentation to the board for the first time.

"We are looking at all angles and the risks of running the project. I hope things will be positive and we can proceed," he told Business Times in an interview, here, yesterday.

Megat Najmuddin said Petronas and local and international consultants are currently conducting studies.

The Rapid complex, Malaysia's largest liquid-based green-field downstream development, has been postponed twice due to a delay in the Johor government's relocation of residents and cemeteries.

Megat Najmuddin said even though land acquisition and infrastructure works are ongoing, Petronas will not rush if Rapid is unfeasible.

"We have to weigh the risks with a lot of due diligence. It is not only critical that the refineries perform, but (also) ensuring that the downstream activities we are feeding will add value to the oil and gas that is going to be produced," he said.

Petronas is acquiring 2,400ha of land for Rapid within the mammoth Pengerang Integrated Petroleum Complex project.

There are about 30 ongoing infrastructure projects, such as the upgrading of the existing dual-lane single carriageway and building a new dual-lane carriageway.

A dam with 88km of pipelines will also be constructed to provide raw water for Rapid and general use in Johor.