Friday 29 Mar 2024
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PENGERANG: Petroliam Nasional Bhd (Petronas) will award more contracts in the development of its Pengerang Integrated Complex (pic) here in Johor over the next two years, said its vice-president of infrastructure and utilities Pramod Kumar Karunakaran.

“We just made an announcement [about contract awards] two months ago and we will announce the others later,” he told reporters after the groundbreaking ceremony for the Pengerang Co-generation Plant (PCP) yesterday, but did not elaborate.

In August this year, Petronas handed out 13 contracts and three letters of award to successful bidders for the PIC project. Of the total contracts given out, five were for the engineering, procurement, construction and commissioning (EPCC) for the refinery and steam cracker component of the project.

The remaining eight contracts went to the common facilities and infrastructure projects.

Meanwhile, the first of the four proposed PCP units at PIC is expected to be commercially operational by mid-2017.

“The other three units will come online in stages by 2019, in line with the PIC start up deadline,” said Pramod.

The PCP is to be built by a consortium comprising Siemens AG, Siemens Malaysia and MMC Engineering Sdn Bhd, for a development cost of about RM5 billion.

“As one of the most critical support facilities developed within the PIC, the co-generation power plants will play an important role in providing reliable steam and power to meet the requirements of the plants within the PIC area and supplement the needs of Peninsular Malaysia’s power grid,” said Pramod.

The co-generation power plants are expected to power the entire complex by generating 1,220 mw of electricity as well as provide a continuous supply of steam of up to 1,480 tonnes per hour for plants within the complex.

Pramod said of the 1,220 mw of electricity generated, 400 mw would be sold to Tenaga Nasional Bhd to be put onto the national grid for public consumption. The remaining three units will supply power to the other facilities under the PIC.

Meanwhile, Johor Public Works, Rural and Regional Development committee chairman Datuk Hasni Mohammad (pic) said the construction of the Pengerang Integrated Petroleum Complex (PIPC) is expected to boost Malaysia’s gross national income by an additional RM20 billion by 2020.

“Pengerang currently has RM89 billion worth of projects in the pipeline, accounting for 33% of investment costs of all our entry point projects and nearly 70% of those on the oil, gas and energy sector,” he said.

“Ultimate investment over time could be as high as RM170 billion, including the committed RM89 billion,” he added.

 

This article first appeared in The Edge Financial Daily, on November 4, 2014.

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