Refinery and Petrochemical Integrated Development is considered as the largest petrochemical composite undertaking presently in the part of South East Asia. RAPID undertaking is located in Pengerang, South Eastern of Johor province. As the chief investor, PETRONAS proposed RM60 billion investing for RAPID undertaking. The major production of RAPID is the rough oil refinery with polishing capacity of 300,000 BSPD. The rough oil refinery will move as the spinal column of the undertaking that will provide sufficient feedstock to the petrochemical composite. With conservative estimation, petrochemical composites will bring forth an one-year combined production of about 3 million metric tons of ethene, propene, C4 and C5 alkenes. The good status had attracted few company to spouse with PETRONAS in the RAPID undertaking. At present, there are five ( 5 ) company which had signed an understanding with PETRONAS to jointly have, develop, concept and operate production installations for a host of forte chemical merchandises within Petronas ‘ proposed RAPID undertaking in Pengerang, Johor.
Those five ( 5 ) company are ITOCHU Corporation of Japan & A ; PTT Global Chemical Public Company Limited, DIALOG, Italy-based Versalis SpA, and Evonik Industries AG. Initially, another German universe taking chemical company, BASF, had signed the Head of Agreement ( HoA ) with PETRONAS. However, in 21 January 2013, PETRONAS announced that the Head of Agreement ( HoA ) between two parties for a jointly forte chemicals venture within PETRONAS ‘ RAPID undertaking in Pengerang, Johor, has been terminated by common understanding. Unfortunately, following dialogues, PETRONAS and BASF concluded that it would be in their common involvement to end the HoA as both parties were unable to come to an understanding on the footings and conditions for the execution of the proposed venture. After the intelligence of expiration of HoA between PETRONAS and BASF was released, another company had signed a Letter of Intent ( LOI ) with PETRONAS about at the same clip. Evonik Indutstries AG is to the full interested to jointly ship on the development of production installations of forte chemicals within PETRONAS ‘ RAPID undertaking in Pengerang, Johor.
Although there are merely six ( 6 ) company which have signed understanding to be portion into PETRONAS ‘ RAPID undertaking, it is widely believed that more possible company are yet to fall in the PETRONAS ‘ RAPID undertaking. Therefore, in this chapter, it largely covers the background and licensors ‘ issue of those six ( 6 ) company. At the average clip, this chapter will besides cover the difference of the development of production installations of forte chemicals among the company in different location. Besides that, it will do the comparing of two company in different petrochemical composite based on several facets. Furthermore, this chapter will include the proposed possible company that are feasibleness for PETRONAS ‘ RAPID undertaking. In add-on, this chapter will besides analyse the function playing and licensors ‘ issue of the latent company within PETRONAS ‘ RAPID undertaking.
4.2 Role Playing and Licensor of Company in PETRONAS ‘ RAPID undertaking
PETRONAS is considered as the major investor for RAPID undertaking and will have, concept and run the oil refinery works and besides naphtha cracker works. PETRONAS, for being one of the prima oil and gas industrial company in the universe, has full of experience in building and runing the oil refinery works and besides naphtha cracker works. PETRONAS no uncertainty has the profession and engineering to manage oil refinery works which polishing a capacity of 300,000 BSPD petroleum oil. PETRONAS has taken the licence engineering from the old licensor, Exxon Mobil Research and Engineering ( EMRE ) . Those 300,000 BSPD of petroleum oil will be refined and converted into different crude oil merchandises, distributed and supplied to full petrochemical workss within RAPID undertaking.
Presently, RAPID undertaking comprised building work of few petrochemical workss such as H peroxide works with a production capacity of 250,000 MTPA, a 220,000 MTPA isononanol works, an 110,000 MTPA 1-butene works and a 1,300MW gas-fired power works. These are merely portion of the petrochemical workss within RAPID undertaking. There are few investors have non made determination on the building of petrochemical workss. The determination will be made subsequently the 3rd one-fourth of this twelvemonth. On that clip, we will cognize full program of RAPID undertaking. However, we can specify their move for RAPID undertaking based on the profile of the company such as ITOCHU Corporation of Japan and PTT Global Chemical Public Company Limited.
4.2.2 ITOCHU Corporation of Japan & A ; PTT Global Chemical Public Company Limited
Both ITOCHU Corporation of Japan and PTT Global Chemical Public Company Limited are the universe taking chemical company in oil and gas industry. The Energy & A ; Chemical company under ITOCHU Corporation consists of two divisions: the Energy Division and Chemical Division. The Energy Division facilitates the development and trade of bioethanol, concentrating on developments in rough oil, natural gas, and other resources, and the supply concatenation where trade centres around the universe originally operate. On the other side, the Chemical Division handles basic chemicals, man-made rosin, man-made fiber natural stuffs, electronic stuffs, secondary battery-related stuffs and pharmaceutical merchandises, among others. The company creates synergisms in both of these globally runing divisions and have created an optimum value concatenation in crude oil, gas, and chemicals, in an attempt to enrich the lives of people in the universe. Another party, PTT Global Chemical Public Company Limited is the merger of PTT Chemical Public Company Limited and PTT Aromatics and Refining Public Company Limited to be the chemical flagship of PTT Group. The integrating consequences in making a entire Olefins and Aromatics production capacity of 8.2 million dozenss per twelvemonth and crude oil production capacity of 280,000 barrels per twenty-four hours, doing it Thailand ‘s largest and Asia ‘s taking incorporate petrochemical and refinement company. PTT Global Chemical Public Company Limited is strengthened with its diverseness of merchandise in both Olefins and Aromatics line, which improves its competitory advantage every bit good as the ability to cut down hazard inherent in the petrochemical industry.
On 18th May 2012, ITOCHU Corporation of Japan and PTT Global Chemical Public Company Limited ( PTTCG ) have signed the Head of Agreement ( HoA ) with PETRONAS for the development of PETRONAS ‘ RAPID undertaking in Pengerang, Johor. Mr. Sirisaengtaksin, Chief Executive Officer of PTTGC, said
“ Through this new coaction, we hope to beef up our ties and concern synergisms within the Southeast Asia Region and to besides run into the demands of a quickly turning ASEAN part ‘s population and AEC market growing ”
“ We hope besides to further beef up our confederation and look frontward to a long and sustainable relationship with PETRONAS and ITOCHU far into the hereafter through our coaction in high value added chemicals to function the automotive, building and electronic industries. ”
Figure 4.1 illustrates the sign language ceremonial of PETRONAS ‘ RAPID undertaking between ITOCHU Corporation of Japan, PTT Global Chemical Public Company Limited and PETRONAS.
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Figure 4.1: The sign language ceremonial of PETRONAS ‘ RAPID undertaking between ITOCHU Corporation of Japan, PTT Global Chemical Public Company Limited and PETRONAS.
As mentioned antecedently, the proposed refinery will hold a capacity of 300,000 barrels per standard twenty-four hours and will provide naphtha and liquid crude oil gas ( LPG ) feedstock for the RAPID petrochemical composite, every bit good as green goods gasolene and Diesel that fitting European specifications. With such a big sum of rough oil supply, ITOCHU and PTT are able to bring forth assorted merchandiser classs petrochemicals merchandises. In anterior, we discuss about the development of ITOCHU Corporation in PETRONAS ‘ RAPID undertaking. In fact, ITOCHU Corporation signed a separate Heads of Agreement with PETRONAS and PTT Global Chemical, an incorporate refinery, petrochemical, and aromatic participant, towards the development of the new undertaking for a few petrochemical downstream undertakings within the Project RAPID. It is widely believed that the production installations should be near to the chemical industrial country covered by ITOCHU antecedently. Therefore, we courageously concluded that ITOCHU Chemical Division will have, develop, concept and run a petrochemical downstream undertaking in PETRONAS ‘ RAPID undertaking in Pengerang, Johor.
By and large, ITOCHU trades an extended batting order of merchandises, including basic chemicals, plastics, electronic stuffs, and pharmaceutical natural stuffs. ITOCHU has the higher chance to run man-made fiber production works. The licensor of man-made fiber production works could be UOP Technology. UOP Technology provide the licence of engineering for ITOCHU and let ITOCHU to utilize the peculiar engineering to run the man-made fiber production works. ITOCHU will demand the feedstock of man-made fiber from PETRONAS ‘ oil refinery as there is sufficient capacity of up to 300,00 BSPD polishing rough oil supply.
Similarity, as the coaction spouse, PTT Global Chemical Public Company Limited ( PTTGC ) , collaborate with ITOCHU Corporation and PETRONAS, to have, develop, concept, and run at least two petrochemical workss in RAPID undertaking. The petrochemical workss are non specified yet until now. However, based on the address of Mr. Sirisaengtaksin, Chief Executive Officer of PTTGC, it is widely believed that the production of forte chemical is largely high value added chemical to function the automotive, building, and electronic industries. The hereafter program announced by PTTGC references that there is $ 11 billion capex by twelvemonth 2020. PETRONAS ‘ RAPID undertaking is besides included and considered as one of the important undertaking in the hereafter program. The concluding determination will be on the center of this twelvemonth. Nevertheless, we strongly believed PTTGC, associated with ITOCHU Corporation to run alkenes downstream production works and aromatic works. Generally, ethene and propene can bring forth polythene, polypropene, HDPE, LDPE, and LLDPE. The capacity of these merchandises is considered big in sum as there is sufficient alkenes supply. Besides that, aromatic merchandises such as benzine, methylbenzene and mixed-xylene are besides produced through the petrochemical works every bit good to provide them as natural stuffs to bring forth the downstream industries such as polystyrene. Alongside the monolithic production of alkenes, aromatics, and byproduct produced, PETRONAS ‘ RAPID is expected to carry through the demand and monolithic demand of feedstock from South East Asia state and Asia state particularly China. PETRONAS ‘ RAPID is expected to step out to go the major and taking natural stuff provider within the part in South East Asia and even the full Asia part.
PTTGC operates the aromatics works and green goodss and distributes primary aromatics, viz. benzine, paraxylene, orthoxylene, methylbenzene, assorted xylols, and cyclohexane ( intermediate merchandise ) – as feedstock for intermediate and downstream industries. PTTGC runs two aromatics workss, it boast the engineering of UOP, a world-renowned licensor known for changeless upgrading. Both installations allow feedstock and merchandise exchange to optimise paraxylene and benzine production. PTTGC plans to bring forth a sum of more than 2.05 million dozenss of aromatics with an 88 % use rate and uninterrupted procedure efficiency betterment which over the past few old ages record. Alongside the experience of runing the aromatic works, PTTGC knows the efficiency betterment move and straightly use into PETRONS ‘ RAPID undertaking. The consecutive moves such as replacing of heat money changer of the distillment tower to bring forth 25,000 dozenss per twelvemonth of extra paraxylene and installing of grapevine system to the refinery to bring forth reformate to add value to excess rancid naphtha from aromatics works. PTTGC may use the engineerings into the aromatics works in RAPID undertaking and produces greater sum and quality of merchandises. PTTGC may lift RAPID undertaking become the prima petrochemical composite in Asia part.
On the other sides, PTTGC Group obtains alkenes ( a collective name for ethene and propene ) from PETRONAS ‘ naphtha cracker works for intermediate and downstream petrochemical workss in the industrial estate, for HDPE, LDPE, and LLDPE workss within the Group, and for the ethylene oxide/ethylene ethanediol ( EO/EG ) works, entirely owned by PTTGC. The Group produces and sells alkenes byproducts, viz. assorted C4, pyrolysis gasolene, tail gas, cracker underside, and H, to domestic and foreign clients. To supplement value to these, PTTGC will run the butene-1 and butadiene undertaking from assorted C4 with a combined capacity of about 100,000 dozenss per twelvemonth. Today, the works ‘s basic technology design has been completed, with a start-up day of the month in about the 2nd one-fourth of 2014.
In add-on, it is widely believed that PTTGC will owns, concepts and operates a 1,300MW gas-fired power works within RAPID undertaking. The gas-fired power works supply power throughout the full RAPID undertaking. The feedstock used to bring forth the power works is natural gas that obtained from the petroleum oil. In order to accomplish green environment, the feedstock besides can be obtained from the recycled natural gas from other petrochemical works. This action has non merely achieve green environment yet it helps to cut the cost of production.
4.2.3 Italy-based Versalis SpA
Italy-based Versalis SpA is the 3rd petrochemical company to fall in PETRONAS ‘ RAPID undertaking in Pengerang, Johor. On 17th July 2012, PETRONAS and Itay-based Versalis SpA have signed for Head of Agreement ( HoA ) to jointly have, develop, concept, and run elastomer works within PETRONAS ‘ RAPID undertaking in Pengerang, Johor. Based on the study statement, under the footings of the HoA, the proposed joint venture will bring forth and market man-made gum elastics by utilizing Versalis ‘ engineering licence and engineering know-how. Versalis ( once known as Polimeri Europa ) is a petrochemical company and flagship company of Eni SpA, an Italian transnational oil and gas company. It handles the production and selling of a broad portfolio of petrochemical merchandises, utilizing a scope of proprietary engineerings and state-of-the-art production systems and a wide-reaching and efficient distribution web.
Versalis provides its ain engineering of licence and proves that Versalis has much assurance to the application of engineering for the elastomer works. For your information, the patent and proprietary engineering portfolio ranges from basic merchandises to polymers phenol and derived functions, polythene, styrenics and elastomers, but besides accelerators, and particular chemical merchandises. Versalis contributes a batch of attempts to develop its ain proprietary engineering by utilizing the direct experience earned at its research and development Centre, its production workss, and besides sing the feedbacks of the market towards its merchandises. Throughout this attack, Versalis manages to optimise and beef up the designing of the individual devices and workss, of their public presentations, of the public presentations of the proprietary accelerators, of the features of the merchandises acquiring outstanding consequences in all the engineerings of the company ‘s concern countries. And this is the ground that Versalis intends to utilize its ain engineering licence.
The elastomer engineering used for the elastomer works within PETRONAS ‘ RAPID undertaking are: ( 1 ) emulsion polymerized styrene-butadiene gum elastic ( e-SBR ) , ( 2 ) solution polymerized styrene-butadiene gum elastic ( s-SBR ) , ( 3 ) SBS copolymers engineering ( SBS ) , ( 4 ) NBR butadiene-acrylonitrile gum elastics engineering ( NBR ) , and ( 5 ) High Cis Polibutabiene rubber engineering ( HCBR – NEOCIS ) . These engineering are largely believed to be brought and applied into the elastomer works with PETRONAS ‘ RAPID undertaking in Pengerang Johor. The brief debut of each engineering is needed for more apprehension.
Emulsion polymerized styrene-butadiene gum elastic is one of the most common used polymers in worldwide, used in a big assortment of applications which significantly provide good quality of our life. The Versalis proprietary engineering achieves wide-range of merchandises which covers all e-SBR field of application like tyres, footwears, visible radiation coloured and etc. Besides that, High Solids SBR Latices, whose chief applications are in moulded froth, gel and non-gel rug froth and stiffness foil Latexs, are besides taking merchandise based on Versalis proprietary engineering.
Other the other manus, solution polymerized styrene-butadiene gum elastic is the most suited feedstock for extremely specified Sur constituents used in the fiction of high public presentation Surs, where the lowest fuel ingestion and the highest lastingness are required. In order to keep the quality of polymerized styrene-butadiene gum elastic, s-SBR proprietary engineering has been developed as an option to emulsion engineering to bring forth new merchandise classs and besides to significantly cut down some environmental impact of the emulsion engineering.
Following by Versalis SBS engineering, it is flexible in providing the different merchandise classs required by the SBS market to run into new application demands. Hence, the competitory production of the most common SBS classs and the extra SBS classs for particular applications are allowed by Versalis SBS engineering.
Besides that, NBR butadiene-acrylonitrile gum elastics are copolymers of butadiene ( BD ) and propenonitrile ( AN ) produced by induction oxidation-reduction accelerator systems to an emulsion polymerization reaction. The high opposition to oils over a broad temperature scope is surely one of most of import characteristic of Nitrile Rubber. Furthermore, goods NBR-based are usually high strength and opposition to scratch belongingss. Originally, Versalis used cold radicalic polymerisation engineering for NBR production and was so continuously improved and modified its ain NBR butadiene-acrylonitrile gum elastics production engineering based on market petitions and feedbacks to run into the safety ordinance demand.
At last, High Cis Polibutabiene rubber engineering was foremost developed in the 80s, with the purpose to bring forth rubber classs with specific belongingss in Sur sector every bit good as in other industrial applications. Typical High Cis Polibutabiene gum elastic works consists of one reaction subdivision, one coating line and one packaging line.
Figure 4.2: Polimeri Europa proprietary engineerings for licencing – connectivity strategy
Based on the engineering development and experience taken in operation of elastomer works, it is widely believed that Versalis will concentrate on the partnership alongside with first-class proved elastomer operation records and wealth of experience and expertness that would significantly lend towards beef uping PETRONAS and Malaysia ‘s place as a cardinal downstream petrochemical participant in the South East Asia part or the full Asia part.
4.2.4 Evonik Industries AG
PETRONAS is pleased to denote that a Letter of Intent ( LOI ) was signed with Evonik Industries AG to jointly prosecute on the development of production installations of chemical forte within PETRONAS ‘ RAPID undertaking in Pengerang, Johor. On 13 January 2013, Evonik Industries AG officially signed the Letter of Intent ( LOI ) with PETRONAS and became the latest petrochemical company puting in RAPID undertaking followed by ITOCHU Corporation, PTT Global Chemical Public Company Limited, and Italy-based Versalis SpA.
Evonik, the originative industrial group from Germany, is one of the universe leaders in forte chemicals. Evonik ‘s corporate scheme manages to keep profitable growing and a sustained addition in the value of the company. Basically, its activities focus on the cardinal megatrends wellness, nutrition, resource efficiency and globalisation. Evonik benefits specifically from its advanced art and incorporate engineering platforms.
Under the LOI, Evonik Industries AG planned to organize a partnership with PETRONAS to jointly have, develop, concept and operate installations for the production of H peroxide, C4 co-monomer and oxo-products within RAPID project.. The proposed workss within RAPID undertaking are expected to bring forth a capacity of 250,000 metric dozenss of H peroxide, 220,000 metric dozenss of isononanol ( INA ) and 110,000 metric dozenss of 1-butene yearly. Furthermore, the H peroxide will be used to bring forth propylene oxide by the accredited, eco-friendly H peroxide to propylene oxide ( HPPO ) procedure. The accredited engineering, HPPO procedure, was jointly developed by Evonik and ThyssenKrupp Uhde.
Figure 4.5: Capacity of Evonik Petrochemical Production Plant ( Source: Evonik Annual Report, 2011 )
Evonik is one of the universe ‘s largest manufacturers of H peroxide and C4 based merchandises with production installations in Europe, North America, South America, New Zealand, Asia, South Africa and Indonesia. The world-wide capacity of H peroxide production is in surplus of 600.000 dozenss per twelvemonth. With more than 100 old ages of experience in peroxygen chemical science, Evonik is believed able to supply high quality merchandises backed up by professional proficient, technology and gross revenues support within PETRONAS ‘ RAPID undertaking. The H peroxide works is expected to tout an one-year production capacity of 250,000 metric dozenss therefore increasing the current overall H peroxide in worldwide. The group believes it is traveling to go the largest maker of H peroxide. Today, H peroxide is widely used for assorted chemical industries. Therefore, it is a wise attack to run H peroxide production works within RAPID undertaking.
By and large, H peroxide ( H2O2 ) is an environmentally friendly chemical used for oxidization reactions, decoloring procedure in mush, paper, and fabric industries, assorted waste H2O and air intervention, and for assorted disinfection applications. Nevertheless, Evonik has decided to implement the HPPO procedure with its ain engineering licensing which is developed by Evonik and ThyssenKrupp Uhde within RAPID undertaking. The advanced HPPO procedure allows the oxidizer to be used to bring forth propylene oxide. The HPPO procedure benefits that it requires significantly less investing and allows a high grade of production efficiency. It is besides an highly eco-friendly procedure.
Besides that, oxo-products production works such as isononanol ( INA ) production works will be implemented within RAPID undertaking by Evonik. Basically, isononanol ( INA ) is the most of import natural stuff used for fabricating large-volume of plasticisers. Plasticizers are chemical compounds that are used to do PVC stuffs to be flexible. The plastics become softer and more elastic and fictile for certain coveted usage. Plasticizers change the physical belongingss of the plastics without chemically respond with the stuffs. As expected, Evonik plans to bring forth 220,000 metric dozenss of isononanol ( INA ) yearly through the works within RAPID undertaking. This sum of capacity are believed sufficiently for demands throughout the South East Asia part. Most of the isononanol produced renders in the industry of DINP ( di isononyl phthalate ) . The engineering licensor for the isononanol ( INA ) production works will be ThyssenKrupp Uhde. Uhde offers its excellent proprietary engineering for the isononanol production works within RAPID undertaking. Similarly, the proprietary engineering is developed based on research and production workss for many old ages. With this type of attack, the proprietary engineering benefits that allows a high grade of efficiency with less investing demand.
In add-on, Evonik has confirmed to run a capacity of 110,000 metric dozenss yearly 1-butene production works within RAPID undertaking. Evonik uses its ain proprietary engineering to run the 1-butene production works. Basically, 1-butene is used chiefly as a co-monomer for polythene ( LLDPE, HDPE ) or co-monomer for ethylene/propylene copolymers. The advantage of 1-butene is chiefly to better for the tear strength of the polymer. Furthermore, it is besides used as intermediate for the production of assorted merchandises such as antioxidants, plasticisers, weedkillers, corrosion inhibitors or additives to lubricating and hydraulic oils.
Evonik Industries AG are concentrating on RAPID undertaking earnestly as they implement three chief petrochemical production works within PETRONAS RAPID undertaking in Pengerang, Johor. As the Member of the Executive Board of Evonik, Dr. Dahai Yu said,
“ The full undertaking is set to tag another milepost in our growing scheme in the Asiatic market. This is why we ‘re seeking for a strong long-run strategic spouse like PETRONAS. ”
The partnership is expected to beef up the PETRONAS place as the cardinal downstream petrochemical participant every bit good as to place Malaysia as the figure one oil and gas hub in the Asia Pacific part by 2017. Throughout the coaction, Evonik Industries AG farther consolidates its place as one of the universe largest manufacturers of H peroxide and C4-based merchandises.
4.3 The Comparison of RAPID Project and Kerteh and Gebeng Integrated Petrochemical Complex
4.3.1 Construction and Operation Area
Kerteh and Gebeng Integrated Petrochemical Complex is playing the important function in the development of Malayan petrochemical composites of the east seashore industrial corridor. Although isolated from the state ‘s mainstream economic activities and politically typical, these former fishing small towns have been transformed into Malaysia ‘s petrochemical industrial hub within a 30 old ages period. Similarly, RAPID undertaking besides transforms the fishing small towns in Pengerang, Johor into another larger petrochemical industrial hub comparing to the 1 in east seashore industrial corridor ( ECIC ) . Presently, Kerteh and Gebeng Integrated Petrochemical Complex have become the prima function to multi-national crude oil, gas and chemical giants and are widely believed to hold received highest concentration of foreign direct investing ( FDI ) in Malaysia. However, Upon mark commissioning day of the month in 2016, RAPID will go the largest petrochemical industrial hub within Asia Pacific Region.
Kerteh and Gebeng are two different locations but planned to go industrial townships within the east seashore industrial corridor ( ECIC ) of Peninsula Malaysia. The two town are connected by a dedicated railroad. In contrast, RAPID undertaking is planned to constructed at merely one town country without any connexions from other topographic points. The figure 5.3 and figure 5.4 illustrate the Integrated Petrochemical Complex at Gebeng and location program of RAPID undertaking. Currently KPIC covers over 2,800 estates of land, and is planned to spread out to cover about 13,200 estates by the twelvemonth 2010. In present, GPIC covers about 8900 estates and it is expected to spread out to about 23,700 estates by the twelvemonth 2008. Initially, as statement from DEIA study, RAPID undertaking is planned to cover 6,242 estates of land in Pengerang. The land covered will be farther under enlargement to be larger than the combination of IPC in Kerteh and Gebeng and in Melaka on the commissioning day of the month by 2016.
Figure 5.3: Incorporate Petrochemical Complex at Gebeng ( Beginning: Annual Report PETRONAS, 2008 )
Figure 4.5: Location Plan of RAPID Project ( Source: DEIA Report, 2012 )
4.3.2 Capacity of Crude Oil Refinery
In past, KIPC was merely used as a petroleum oil channel, and as a liquified crude oil gas ( LPG ) refinery. KIPC channels a capacity of 400,000 BSPD petroleum oil and 2,200 million three-dimensional pess of LPG. Furthermore, KIPC besides received some 250 million of LPG from Indonesia. Comparing to RAPID whereby RAPID is expected to hold a refinement capacity of 300,00 BSPD of rough oil. Upon mark commissioning day of the month in 2016, the state ‘s entire refinement capacity is to be increased to 935,300 barrels daily ( bpd ) from the current 635,300 bpd produced by the PETRONAS refineries in Kertih and Melaka. The refinery production of rough oil in RAPID undertaking is illustrated in figure 4.5.
Figure 4.5: Capacity Production of Crude Oil in RAPID undertaking ( Beginning: DEIA Report of RAPID, 2012 )
4.3.3 Petrochemical Plants and Capacity of Productions
For petrochemical related merchandises, the current production capacity from the PETRONAS composites in Gebeng and Kerteh is about 2.6 million KMTPA and upon RAPID operation, there will be an addition in production capacity to 6.5 million ( KMTPA ) . It proves that the production capacity of RAPID undertaking is expected to be much greater than GIPC and KIPC.
Figure 4.5 Capacity of Production ( Source: Annual Report of PETRONAS )
Both Kerteh and Gebeng Integrated Petrochemical Complex and RAPID undertaking have received high concentration of foreign direct investing ( FDI ) in Malaysia. Kerteh and Gebeng Integrated Petrochemical Complex have attracted foreign company to fall in partnership to have, develop, concept and operate petrochemical workss. In GIPC, the PETRONAS and its joint-venture workss, the Gebeng IPC is besides host to a figure of transnational chemical companies, such as Amoco Chemicals, which owns and operates a purified terephthalic acid works, and Eastman Chemicals, which owns and operates a copolyester plastic rosin works. Figure 4.4 illustrates the major petrochemical works and its production capacity.
Figure 4.4: Production of Capacity of Petrochemical Plants in Gebeng ( Beginning: Annual Report PETRONAS, 2008 )
The MTBE works produces a capacity of 300,000 pta of MTBE and 80,000 pta of propene. Besides that, propane dehydrogenation works produces another capacity of 300,000 pta of propene. The propene production works besides add on green goodss 80,000 pta of propene. In add-on, the BPC Acrylics Complex produces four ( 4 ) assorted of chemical merchandises which are 160,000 tpa Crude Acrylic Acid, 20,000 tpa Glacial Acrylic Acid, 100,000 tpa Butyl-Acrylate, 60,000 tpa 2-Ethyl Hexyl Acrylate. Furthermore, BPC Oxo-Alcohols and Syngas produces five ( 5 ) petrochemical merchandises like 80,000 tpa 2-Ethyhexanol, 40,000 tpa Phthalic Anhydride, 100,000 tpa Plasticizers, 160,000 tpa Butanols, 170,000 tpa Syngas. For BPC Butanediol Complex, a capacity of 100,000 tpa Butanediol is produced through the composite.
PETRONAS ‘ Integrated Petrochemical Complex ( IPC ) located within the PETRONAS Petroleum Industry Complex ( PPIC ) in Kertih, Terengganu is an of import nexus in our gas value concatenation. Receiving gas feedstock from the Fieldss offshore Terengganu, the Kertih IPC chiefly consists of ethylene-based petrochemical workss. The workss located within this IPC include two ethylene crackers, a polythene works, an ethylene oxide/ethylene ethanediol works, a multi-unit derived functions works, vinyl chloride monomer/PVC workss, ammonia/synthesis gas workss, an acetic acid works, an aromatics complex and a low-density polythene works. These workss are owned and operated chiefly on a joint venture footing with assorted foreign spouses with the advanced engineering and experience, fiscal strength and market entree to add value to the concern. Figure 4.4 illustrates the major petrochemical works and its production capacity. The ethene works produces a capacity of 400,000 pta of ethene. Besides that, polythene works produces capacity of 200,000 pta of polythene and 55,000 pta of pipe combination. The vinyl chloride monomer production works besides produces 400,000 pta of vinyl chloride monomer. In add-on, the Polyvinyl Chloride ( PVC ) works produces a capacity of 160,000 tpa PVC, Furthermore, Amonia and Syngas works produces 450,000 tpa ammonium hydroxide and 325,000 tpa Syngas. For acetic acid works, a capacity of 400,000 tpa acetic acid is produced through the works. The aromatics works produces capacity production of 500,000 tpa Paraxylene and 188,000 tpa Benzene. Olefins ( Second Cracker ) chiefly produces 600,000 tpa Ethylene and 95,000 tpa Propylene for downstream production. Ethylene Oxide and Ethylene Glycol production works produce capacity of 140,000 tpa Ethylene Oxide and 385,000 tpa Ethylene Glycols severally. Ethylene Derivatives production works produces five ( 5 ) petrochemical merchandises such as 30,000 tpa Ethoxylates, 75,000 tpa Ethanolamines, 60,000 tpa Glycol Ethers, 140,000 tpa Butanol and 50,000 tpa Butyl Acetate to contributes for downstream production uses. The Low Density Polyethylen production works produces a capacity of 255,000 tpa LDPE. For RAPID undertaking, the capacity of production workss is clearly figured out in old chapter. Therefore, for the information sing the capacity of production within RAPID undertaking, you are advised to mention the old chapter.
Figure 4.4: Production of Capacity of Petrochemical Plants in Kerteh ( Beginning: Annual Report PETRONAS, 2008 )
4.4 The Comparison of RAPID Project and Titan Petrochemical Complex in Pasir Gudang
4.4.1 Location and Construction and Operation Area
Titan petrochemical composite is owned and operated by Titan Chemical Group presently with the name of Lotte Chemical Titan Holdings Sdn. Bhd. Titan petrochemical composite constructed its first installation in Malaysia, a RM300 million polypropene works in twelvemonth 1989. Within 20 old ages, Titan has successfully owned, developed, constructed and operated a sum of 10 integrated procedure installations in Pasir Gudang and in Tanjung Langsat. The Titan petrochemical composite in Pasir Gudang has merely country of 222 estates which is much smaller than PETRONAS RAPID undertaking in Pengerang. Titan petrochemical composite largest integrated alkenes and polyolefins manufacturer in Malaysia and the 2nd largest polyolefins manufacturer in south east Asia in footings of capacity. However, shortly or subsequently, the taking place will be replaced by PETRONAS RAPID undertaking. Figure 4.6 illustrates the Titan petrochemical composite.
Figure 4.6: Titan Petrochemical Complex in Pasir Gudang
4.4.2 Capacity of Crude Oil Refinery
In fact, Titan petrochemical composite do non hold any rough oil refinery unit. The rough oil is transferred to Titan petrochemical composite via grapevine which connected with the oil refinery unit in Sarawak and Indonesia. In contrast, RAPID have its ain oil refinery unit which able to polish a entire capacity of 300,000 barrels per twenty-four hours. In this instance, RAPID undertaking is possible to be an alternate manner for Titan petrochemical composite to carry through its demands since the bringing distance is much closer.
4.4.3 Petrochemical Plant and Its Production Capacity
Titan Petrochemical composite includes two naphtha cracker which provides feedstock for its ain production of polythene, polypropene and aromatics. The crackers can bring forth big capacity of ethene and propene. In twelvemonth 1999, a new cracker unit is constructed to hike the capacity of the petrochemical composite in Pasir Gudang up to 560,000 tpy ethene and 280,000 tpy propene, driving up its economic graduated table. Figure 4.7 illustrates the new naphtha cracker in Titan crude oil composite.
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Figure 4.7 Naphtha Cracker in Titan Petroleum Complex
The other major alkenes workss are operated by the Titan Group and these workss make usage of naphtha or LPG as feedstock, which can be imported via the big Johor port. This ethene works was portion of a larger enlargement plan, embracing several polyolefin units. Most of the ethylene merchandise is feed for Titan ‘s polythene ( PE ) and polypropene ( PP ) workss. Staying ethene goes to the merchandiser market. The PP workss take all of the propene. The new aromatics ( BTX ) composite, commissioned in January 2000, takes the pyrolysis gasolene from these naphtha crackers.
Besides that, Titan Petrochemical Complex has included a 200,000 tpy swing HDPE and LLDPE works, a 200,000 tpy LDPE plant. , two PP workss which produce PP homopolymers and PP copolymers. They have a combined capacity of 330,000 tpy of PP. The HDPE and LDPE works uses Union Carbide Corp. ‘s Unipol gas-phase, low force per unit area PE procedure engineering. Titan petrochemical composite besides included a BTX works that produces 108,000 tpy of benzine and 60,000 tpy of methylbenzene and assorted support installations, such as cogeneration power workss, armored combat vehicle farms, and warehouses. The production procedure of the BTX works begins when partly hydrogenated pyrolysis gasolene is piped to a splitter to take assorted xylols. BASF AG ‘s Selop-F C5+ procedure hydrogenates the attendant merchandise. The extractive distillment subdivision uses Krupp Uhde ‘s Morphylane procedure, to pull out benzine and methylbenzene.
In fact, The development of Titan petrochemical composite consists of two stages. n Phase I, Titan developed the first naphtha and LPG cracker, the swing HDPE and LLDPE works, and the first PP works on a 33-hectare site. This initial development cost about $ 661 million ( 1.65 billion Ringgit ) . The company has naphtha supply contracts with Saudi Arabian Oil Co. , Shell International Eastern Trading Corp, Kuwait Petroleum Corp. , and Marubeni International Petroleum ( Singapore ) Pte. Ltd.
However, Phase II, initiated in late 1996 and largely completed by early 2000, more than doubled the size and capacity of Titan ‘s petrochemical composite. It expanded the complex beyond the Pasir Gudang Industrial Estate onto a 40-hectare site in the nearby Tanjung Langsat Industrial Estate. At the cost of RM3.2 million, Titan owned, developed, constructed and operated the 2nd cracker, which has a capacity of 330,000 tpy of ethene and 165,000 tpy of propene. Titan chose to utilize two chief procedure engineerings by Stone & A ; Webster Inc. : Ultra Selective Cracking ( UCS ) for the pyrolysis and quench systems and Advanced Recovery System ( ARS ) for cold fractional process. The 2nd PP works with a capacity of 200,000 tpy, every bit good as a new 100,000 tpy HDPE works were constructed in stage II. Mitsui Engineering & A ; Shipbuilding Co. Ltd. constructed the new LDPE works utilizing ExxonMobil Chemical Co. ‘s high-pressure cannular PE engineering. Both PP workss in stage I and II use Montell ‘s Spheripol PP procedure because Spheripol uses a high-yield, high-stereo-specific accelerator in a two-stage polymerisation system. In stage II, Titan besides owned and operated two new cogeneration power workss, which produce electricity and steam for petrochemical composites at both Pasir Gudang and Tanjung Langsat Industrial Estates.
4.4 The Comparison of RAPID Project and Petrochemical Complex in Melaka
4.4.1 Melaka Refinery Complex
The Melaka Refinery is an built-in constituent of PETRONAS ‘ scheme of integrating and adding value through its downstream operations in petroleum oil refinement, base oil production, lubricant blending and selling, increasing the value of each barrel of rough oil to the state. THE 926-acre Melaka Refinery Complex was constructed to run into Malaysia ‘s turning demands for refined crude oil merchandises and began operations in 1994 as PETRONAS ‘ 2nd refinery, the first being the Kertih refinery in Terengganu. The Melaka Refinery ‘s upper limit demonstrated production rate of 265,000 barrels per twenty-four hours ( bpd ) is larger than that of PETRONAS ‘ Kertih refinery and larger than the Shell and Esso refineries in Port Dickson. With this production capacity, the Melaka Refinery supplies about 30 per cent of Malaysia ‘s crude oil merchandise demands, representing the importance of the Melaka Refinery to the state. As a complex refinery able to ‘crack ‘ heavier oil, the operations of the PETRONAS Second Refinery 2 ( PSR-2 ) enables the Melaka Refinery to polish heavier imported petroleum. This provides PETRONAS with greater flexibleness in sourcing rough oil. The Melaka Group III base oil works ( MG3 ) is the newest add-on to the Melaka Refinery. Coming onstream in 2008 with a production capacity of 6,500 bpd, the MG3 works isone of merely 10 such workss in the universe. Built to bring forth toptier Group III base oils, the MG3 was the concluding edifice block to do the Melaka Refinery a fully-integrated refinery composite. PETRONAS Group III base oils are marketed by PETRONAS Base Oil ( M ) Sdn Bhd under the trade name name ETRO to taking lubricant shapers worldwide. The Melaka Refinery is an indispensable nexus in the Malayan oil and gas industry. By providing 30 per cent of the state ‘s crude oil merchandise demands, and with the capacity to provide up to 42 per cent should the juncture arise, the Melaka Refinery is the primary refinery in Malaysia. As such, it stands at the head of energy security for the state. The Melaka Refinery besides plays an built-in function in adding value to the state ‘s oil resources. Through its refinement activities, lubricant blending and now basal oil production, each barrel of oil that passes through the Melaka Refinery is well increased in value. When sing that a
individual barrel of rough oil can be increased in value several
hundred per cent when it is refined into to the full man-made
lubricator, the value-add of the Melaka Refinery becomes
apparent. The gross to the state has increased significantly
through the value-add from rough oil processing activities.
CONCLUSION AND RECOMMENDATION
5.1 Feasibility of PETRONAS ‘ RAPID undertaking
On 13th May 2012, Sultan Johor officially launched the PETRONAS ‘ Refinery and Petrochemical Integrated Development ( RAPID ) undertaking. The undertaking is proposed to be constructed in Pengerang Johor. PETRONAS ‘ RAPID undertaking is widely believed that it has started a new chapter of petrochemical industries in Malaysia. The RM120 billion undertaking has come up a large issue and attracted the sight of petrochemical company from oversea. PETRONAS has successfully sealed the trade by subscribing the Head of understanding with few company such as ITOCHU Corporation, PTT Global Chemical Public Company Limited, Italy-based Versalis SpA and Evonik Industries AG. BASF was included among the partnership company but has pulled out at the early twelvemonth of 2013 with common understanding. Presently, the joint venture company of RAPID undertaking are considered as the universe taking petrochemical company in assorted facets of petrochemical industries. This statement has proven that the potency of RAPID undertaking to go the first petrochemical composite.
However, a batch of inquiry Markss are still existed within PETRONAS ‘ RAPID undertaking in Pengerang, Johor. The proficient, environmental and economic issues are highlighted and to be concerned all the clip. Many people will oppugn for the feasibleness of PETRONAS ‘ RAPID undertaking. Throughout the instance survey of RAPID undertaking, I would able to reason PETRONAS ‘ RAPID undertaking and answer the inquiries in term of proficient countries. Apart of environmental and economic issues, PETRONAS ‘ RAPID undertaking is expected to lend many resources within Malaysia and overseas. The partnership is steadfast to beef up the prima place of PETRONAS in the downstream petrochemical industries in Asia part. As you know, the joint ventures have full of experience and expert in peculiar facet. Furthermore, they will offer the most advanced engineering for the operation of petrochemical works within RAPID undertaking. Therefore, there is nil we can worry about the deficiency of proficient profession in operation of petrochemical works. For illustration, Evonik implements its ain proprietary engineering so called HPPO procedure to bring forth propylene oxide from H peroxide. This engineering is developed over decennaries based on the researches, operation of works in term of public presentation and feedbacks from the merchandises. They will further expertise the engineering in order to run into the coveted demands within RAPID undertaking. In add-on, the proficient support and safety support are besides professional and specialise in instance of operation mistake. PETRONAS collaborates with other parties cover all the demands and offer the best quality of service and engineering within RAPID undertaking. Therefore, RAPID undertaking is perfectly executable to be implemented in Pengerang, Johor.
Besides that, RAPID undertaking is considered as one of the largest petrochemical undertaking in South East Asia. It provides about 4000 lasting occupation chances. This will assist to raise the degree of cognition and capableness of local companies in the Fieldss of technology, procurance and proficient installing. Furthermore, this is a aureate opportunity for local oil and gas companies to spread out their constructions. The transnational companies besides able to make more chances for the sector. RAPID undertaking extremely demands a competent and skilled work force in the state. In fact, most of the major technology companies are missing of right endowment for their organisation. The demand for extremely skilled profession creates the deficit of competent local applied scientist who are fit for the place.
In the yesteryear, Malaysia was confronting the encephalon drain issue and it was non wholly settled until today. The oil and gas industry endowments are ever lured by the other states. RAPID undertaking. This has causes the deficit of experient applied scientists. For every technology industry, similarly RAPID undertaking, it prefers the applied scientists are competent when fall in the industry and able to suit into new working environment fast. Besides the demand of advanced engineering, RAPID besides requires the best endowments to do Malaysia as the first oil and gas hub in the Asia Pacific part. Despite some local alumnuss are non competent plenty, it is widely believed that the transnational company should hold their ain preparation programme to beef up the human capital development in Malaysia. Other than this, based on the statement made from Ir. Mohd. Jamin bin Mohd. Isa, President of the Association of Malaysian Oil and Gas Engineering Consultants ( MOGEC ) , MOGEC is besides presently developing a human capital development programme together with MPRC. This programme will be linked with local universities to present more pulling internship programme. Throughout this programme, we can expose immature endowments, particularly the concluding twelvemonth undergraduate pupil at university to the industrial field. Due to the deficit of experient local applied scientist, we are eager to implement the programme to rush up the larning curve of the immature local applied scientists so as to be competent and to be on par with foreign experient applied scientists when they are working within RAPID undertaking. The local applied scientists should derive the benefit from the cognition and engineering of foreign companies.
Another issue appears as the local fledgling oil and gas house or little company may confront the job when covering with foreign company whereby it will non go on on other big local company. However, merely if the local company has solid foundation in certain field, it should non hold any large obstructions. Therefore, we can state that PETRONAS ‘ RAPID undertaking in Pengerang, Johor is decidedly executable and operable. The coaction of local company and foreign company forms a complementary partnership within RAPID undertaking to beef up the feasibleness of RAPID undertaking. Currently, RAPID undertaking creates over 4000 lasting occupation places. By 2016, the completed RAPID undertaking may make even more than the figures. This may farther work out the deficit of technology occupation place in Malaysia. Besides that, RAPID undertaking is a important oil and gas undertaking to take Malaysia to go figure one oil and gas hub in Asia Pacific part. The development of RAPID undertaking can non be sloppy. It requires the coaction of top-skilled oil and gas technology houses from abroad and local oil and gas company to do RAPID undertaking successful completed and get down operation by 2016. It besides requires the experient and specialised local applied scientists to run into the demands of foreign company. Therefore, human capital development programme is generated. In this instance, we can state that RAPID undertaking contributes the great chance and attempt to better degree and quality of local applied scientists and of technology company who able to vie and work with foreign company within RAPID undertaking. We can reason that PETRONAS ‘ RAPID undertaking is executable and operable and benefits the most for Malaysia ‘s hereafter.