Saudi Aramco, Petronas Launch Malaysia Downstream Venture

Saudi Aramco, Petronas Launch Malaysia Downstream Venture
View of the structures used to precess oil at Mexican state-owned petroleum company PEMEX refinery in Tula, Hidalgo state, Mexico on March 8, 2011. AFP PHOTO/OMAR TORRES (Photo credit should read OMAR TORRES/AFP/Getty Images)

Saudi Aramco and Malaysian national oil company Petronas have launched their joint ventures in refining and petrochemicals located in Malaysia under the name “PRefChem”, The Saudi Gazette reported.

The two companies are cooperating on the Pengerang Integrated Complex (PIC) located in Pengerang, Johor. A share purchase agreement between Aramco and Petronas was agreed in March 2018 that stipulated equal ownership and participation in the refinery, cracker, and selected petrochemical facilities operations.

“This integrated partnership marks a visionary move by two professionally-run national oil companies where both are able to leverage on each other’s strengths and share technical capabilities as well as experiences for mutual benefit,” stated Petronas president Tan Sri Wan Zulkiflee Wan Ariffin.

Aramco chief executive Amin Nasser said that the joint venture would be “an integral part of Saudi Aramco’s refining and fuels marketing and chemicals business strategies”.

He also emphasized that the venture is in line with Aramco’s downstream plan of “invest[ing] in a global refining and petrochemicals system of world-scale manufacturing complexes in key regions with participated refining capacity of eight to 10 million barrels per day by 2030.”

The PIC will house a refinery complex and ethane cracker – which are 96.54% complete – petrochemical facilities – which are 84.8% complete, as well as a co-generation plant, an LNG regasification terminal, a raw water supply plant, a deep water terminal, and air separation unit, as well as centralized and shared utility facilities.

 

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