KUALA LUMPUR: Petronas Chemicals Group Bhd (PCG) will pump the bulk of this year's US$1 billion capital expenditure allocation into the RAPID (Refinery and Petrochemical Integrated Development) project in Pengerang, Johor.
The US$1 billion is part of PCG's five-year (2016-2020) CAPEX allocation of US$4 billion.
PCG Chairman Md Arif Mahmood said this at a media briefing after the company's AGM here today.
PCG President and Chief Executive Officer Datuk Sazali Hamzah said that the AGM proceeded smoothly with the company explaining in detail to shareholders its investment rationale in the RAPID project.
Asked if the recent rise in petrol price is having a positive effect on the company's earnings, Sazali said that improvement in oil price is good news for the company, but the impact will only be felt later.
He explained that the price of crude, naphtha and ethylene are closely linked and that the effect will only be seen further down the timeline and not immediately.
The two also told media that the Sabah Ammonia Urea (SAMUR) project and the Integrated Aroma Ingredients Complex project in Gebeng, Pahang will be operational in the latter part of the year.
The SAMUR plant, which is 98 per cent completed, is expected to be operational in 2H2016, while the project in Gebeng is should be ready in October 2016, Sazali said.
These will only start contributing to PCG's bottom line at the end of 2016, he added.