Malaysia's JPDC Invites Investors To Locate Businesses In Petroleum Complex

By Rosemarie Khoo Mohd Sani KUALA LUMPUR, Aug 24 (Bernama) -- Investors and integrated players are invited to take up the remaining 4,856 hectares (ha) within the Pengerang Integrated Petroleum Complex (PIPC) to locate their businesses. Johor Petroleum Development Corp Bhd (JPDC) Chief Operating Officer, Izhar Hifnei Ismail, said Dialog Group Bhd and Petroliam Nasional Bhd (Petronas, a Malaysian oil and gas company) had taken up 38 per cent of the total 8,093.71ha in PIPC. PIPC is one big step in creating value to the downstream oil and gas value chain in Malaysia's southern state Johor. "We are calling industrial groups, especially those involved in the manufacturing of plastics, fine chemicals as well as further downstream products that are petrochemical-based to set up plants there. "We are also in talks with potential investors, including from China, South Korea and Japan, which we hope to get them to commit to PIPC by 2020, when Petronas' refinery is ready for its 'Ready for Start-up (RFSU)' in the first quarter of 2019," Izhar Hifnei told Bernama. JPDC is a subsidiary of Malaysia Petroleum Resources Corp entrusted to plan, coordinate and promote the development of downstream oil and gas (O&G) sector in Johor. Unlike other facilities in the country, he said, PIPC is able to provide a complete eco-system for the business and is big enough to accommodate more than one integrated player apart from Petronas. Dialog Group has taken up 202.34ha for development of Pengerang Independent Deepwater Petroleum Terminal (PIDPT), a joint-venture with Royal Vopak of the Netherlands and the State Secretary, Johor (Inc) or SSI. As for Petronas, its Pengerang Integrated Complex accounted for 2,428.11ha which includes the development of the Refinery and Petrochemical Integrated Development project. While investors may consider twice about locating their businesses in PIPC given the current low oil prices of around US$50 (US$1 = RM4.03) per barrel, Izhar Hifnei said, the facility's prospects are for a long term. "PIPC offers not only a good location but is able to provide value-added services in terms of economies of scale, facilities, infrastructure and connectivity to support their businesses," said Izhar Hifnei. He said the full development of PIPC was expected to be completed by 2032. On whether PIPC would compete with regional ports such as the Port of Singapore in the future, Izhar Hifnei said, PIPC's purpose is not to outdo other ports but to optimise and leverage on each other's strengths. "We see Singapore as a matured and advanced point of service for the O&G industry. "We do not wish to compete. Instead we would like to complement what Singapore has to offer by working with each other," he said. --BERNAMA