KUALA LUMPUR (March 12): Pengerang refining complex “in good shape” for start-up in 1Q next year, with an aim to achieve stable operations by 3Q, Colin Wong, CEO of Petronas Refinery and Petrochemical Corp., says in interview in Kuala Lumpur.

* Two petrochemical plants, which were only decided on in 2016, will be complete slightly later in 2019

* Project within initial budget of US$27b and has been financed by Petronas’ capex to date

** Co. looking at project financing now, which will also depend on the outcome of Saudi Aramco JV

* Complex will produce 220k b/d of fuels, on top of 3.5m tons/year of petrochemical products

** Gasoline will be main petroleum product with 90k b/d; it’s Euro 5-compliant and mainly for domestic consumption

** Diesel output at 90k b/d; also Euro 5-compliant, will be exported to the region as Malaysia has excess of diesel

** Sulfur as by-product at ~450k tons/year; for both local use, exports

** Jet fuel, a bit of fuel oil will also be produced

* Half of oil products will be for domestic market, with rest for exports

** ~60% of chemical products are for exports

** Main markets are Southeast Asia, China, India, Australia

* Petronas has been in negotiation with Saudi Aramco on details of partnership in past year

** Aramco has agreed to invest for 50% share of refinery, cracker and petrochemical plant

** Aramco will also be main supplier of crude for complex, accounting for up to 70% of 300k b/d

*** Petronas has rights to supply the balance 30%, which could be sourced anywhere and be evaluated quarterly based on market conditions for best margin

** Aramco will stay as investor of project, which will be mainly operated by Petronas

* Co. has no plans to add more naphtha cracker at the moment

** But studying plans to add more chemical plants; co. to conclude study end-2018 or next year