PENGERANG: Investments in the Pengerang Integrated Petroleum Complex (PIPC) are expected to generate RM8.3 billion to the country's Gross National Income (GNI) by 2020.
Prime Minister Datuk Seri Najib Razak said of the amount, the Petronas's Pengerang Integrated Complex (PIC) would be the biggest contributor in the oil and gas hub.
"PIPC is a strategically important project for the government. PIC, which I consider as the heart of the PIPC, will play a role to encourage new growth under the country's Economic Transformation Programme.
"This will eventually create the basis for a more dynamic and progressive oil and gas downstream industries in Malaysia in the future.
"PIC is expected to generate a rapid growth in the development of the value chain of the downstream industry," said Najib, adding that he was informed that as at the end of September, the PIC was 77 per cent completed.
Najib said that once the complex's refinery plant was operational, the country's oil refinery capacity would increase from 300,000 barrels a day to 955,000 barrels a day, which is in line with the country's efforts to meet the Euro 5 specifications for petrol and diesel.
"The production of different specialty and premium petrochemical products would be able to meet increasing demands in Asia for the next 20 years.
"In this context, PIC's entry into the market would bring a positive impact for the country and is a critical catalyst for the next stage of growth.
"Once PIC is operational, the complex would need a workforce of between 6,000 and 8,000, which would provide opportunities for locals to get involved in the various sectors in the oil and gas downstream industry," said Najib in a speech that was read by Johor Menteri Besar Datuk Seri Mohamed Khaled Nordin.
Khaled was speaking today at the launch of PIC's two associated facilities, namely the Pengerang Co-generation Plant (PCP) and the Regasification Terminal 2 (RGT2).
Najib said the RGT2 will have a capacity of 3.5 million tonnes of liquified natural gas (LNG) a year and will supply gas not only to PIC facilities but also to the Peninsular Gas Utilisation line.
"The construction of RGT2 will support initiatives to liberalise the gas market in Malaysia and guarantee the continuity of gas supply in the future," he said.
Najib said the country's rapid economic development is expected to increase the demand for natural gas and with the construction of the RGT2, the gas supply infrastructure in the country would be strengthened.
"The PCP would supply 1,200 MW of electricity and continous steam at a rate of 1,480 tonnes an hour. It will also supply 400 MW to the national grid, which would help to ensure electricity supply stability to the people in Johor and southern Peninsular Malaysia," said Najib.
He said the Federal government, with the support from the state government, is implementing 25 critical infrastructure projects worth RM2.49 billion to support private investments in PIPC.
"These efforts are part of the 10th and 11th Malaysia Plan, which will fulfill the need for local utilities and facilities.
"Eight of the 25 critical infrastructure projects have been completed while the rest are currently being implemented and expected to be completed by 2020."
Najib said income from the oil and gas industry is still an important contributor to the country, contributing 14.5 per cent to the country's gross domestic product in 2016.
"The private sector's efforts to utilise the potential of this high value industry would become a main economic driver and important projects like the PIC will continue to act as a stepping stone in providing a suitable platform for new growth.
"Since 1974, Petronas has repeatedly proven its capabilities in overcoming challenges and complex situations.
"I want to take this opportunity to once again afffim the government's commitment to support Petronas's successes in various fields because these successes at the world stage is also the core of the country's success and brings prosperity that is shared together," said Najib.