PetChem signs land lease for 91-acre plot in RAPID

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KUALA LUMPUR (Feb 8): Petronas Chemicals Group Bhd (PetChem) and Petronas Hartabina Sdn Bhd have signed a land lease agreement (LLA) in relation to PetChem’s participation in the petrochemicals project under the Refinery and Petrochemicals Integrated Development (RAPID) project in Pengerang, Johor.

PetChem said its unit PRPC Polymers Sdn Bhd had today entered into the LLA with Petronas Hartabina for a plot of land measuring 91 acres with an annual lease fee of RM2.71 per square foot, located in Pengerang.

The lease is for a 30-year period from June 14, 2016, the group added.

The lease will allow PetChem to construct, develop, install and operate the polymer plants and equipment on the land for the duration of the lease.

PetChem had first announced its participation in the petrochemicals project in RAPID on Nov 3, 2015 when it had also acquired the entire equity of the three companies undertaking RAPID’s petrochemical projects from PETRONAS Refinery and Petrochemical Corporation Sdn Bhd (PRPC).

The acquisition had subsequently conferred PetChem the ownership of RAPID’s petrochemicals project consisting of polymers, glycols and elastomers segment.

PetChem’s shares dropped three sen to RM7.96, with 4.15 million shares traded. It has a market capitalisation of RM63.68 billion.