PETROLIAM Nasional Bhd (Petronas) has achieved another milestone by receiving the tallest and heaviest propylene fractionator process column for the steam cracker facility within its Pengerang Integrated Complex (PIC) in Pengerang, Johor, on Saturday.
The fractionator would complement the overall development of the PIC, poised for its refinery start-up by early 2019.
It also established a new record as the tallest and heaviest process column to have landed on Malaysian shores.
The column measures 121.3m — equivalent to a 36-storey building — and weighs 1,808.6 tonnes.
“I am proud to announce that our propylene fractionator has been recognised by the Malaysia Book of Records as the tallest and heaviest process column in Malaysia,” said Petronas senior vice-president and Petronas Refinery and Petrochemical Corporation Sdn Bhd chief executive officer (CEO) Dr Colin Wong Hee Huing.
PIC is a mega-scale, high-complexity development consisting of 23 process plants for refinery, steam cracker, petrochemicals and associate facilities. The project is entering the construction phase and is progressing as scheduled.
“We are optimistic that we can deliver this development within a relatively short timeframe of 52 months from when we reached our final investment decision in April 2014. We are now at the mid-point of the project schedule and are on track towards achieving the overall PIC start-up in the first quarter of 2019,” said Wong.
The PIC development comprises the Refinery and Petrochemical Integrated Development (RAPID) project and six associated facilities, including the Pengerang Co-generation Plant, Re-gasification Terminal 2, Air Separation Unit, Raw Water Supply Project, Pengerang Deepwater Terminal 2 and the Centralised and Shared Utilities and Facilities.
PIC forms part of the Pengerang Integrated Petroleum Complex under the Economic Transformation Programme to establish new engines of growth for Malaysia while meeting future energy requirements.
RAPID is estimated to cost US$16 billion (RM65 billion) while the associated facilities will involve an investment of about US$11 billion.
Maybank Investment Bank said Petronas’ downstream investment of the construction will involve more than 40 engineering, fabrication, packaging and commissioning packages, 200 procurement and construction services packages, 140 organisations and 60,000 workers over a 52-month period.
“We understand that marginal field development in Malaysia remains economically viable despite minimal activities in light of the current low oil price.
“While new activities are on hold, the current focus is on capex/opex reduction at the existing projects and the results have been encouraging, with more than 50 per cent reduction achieved.
“The project construction is on track, with overall progress at 32 per cent with a 2019 first-quarter PIC start-up target.
“Along the way, the petrochemical engineering, procurement and construction packages are likely to be announced by the fourth quarter of this year, followed by the delivery of
the Pengerang Cogeneration project in June next year and the re-gasification facility start-up in December next year.
“There are opportunities to re-activate existing facilities, which are currently shut down.
“Some exploration discoveries can be readily monetised or put into a development, with a field focus on seven million to 12 million barrels of
oil reserves. There are 109 marginal fields in Malaysia,” it said in a note.
Wong also urged contractors and employees to continue adhering to Petronas’ health, safety and environment standards as the PIC development progressed towards the construction peak.
The process column had travelled eight days aboard the Jumbo Maritime-operated vessel MV Fairmaster from the Hyundai Mipo Dockyard in South Korea, before arriving at the Material Offloading Facility port in Tanjung Setapa, Johor.
The vessel also carried a smaller scale propylene fractionator and an ethylene fractionator.
All three process columns are part of the main structures for PIC’s steam cracker complex, to be constructed by a consortium of Toyo Engineering Corporation and Toyo Engineering and Construction Sdn Bhd.
Present to receive the state-of-the art equipment on Saturday were Petronas president and group CEO Datuk Wan Zulkiflee Wan Ariffin, Petronas executive vice-president and CEO (downstream) Md Arif Mahmood and Toyo Engineering Corporation senior executive officer Shoji Koshikawa.
Malaysia Book of Records operations director Christopher Wong Hong Wai also presented the records certificate to Petronas.