Taiwan's Kuokuang Petrochemical Technology Co is considering to set up an integrated refining and petrochemical complex in Pengerang in the state of Johor in Malaysia, rivaling state-owned Petronas' Refinery and Petrochemical Integrated Development, or RAPID, project.
"We are involved in the project in Malaysia but no final decision has been taken. Discussions are going on at the board [level]," a spokeswoman from Kuokuang said Friday. The company is partly owned by Taiwan's state-owned CPC.
Kuokuang had submitted a comprehensive environmental impact assessment report for the project to Malaysia's Department of Environment at the Ministry of Natural Resources and Environment late last month.
Titled KPTC Malaysia Integrated Refinery and Petrochemical Development, or KPTC-MIRPD, the project will include a 150,000 b/d refinery and is expected to begin development by next year, with startup scheduled for early 2018, the report said.
The refinery complex will consist of a crude distillation unit, naphtha cracker and aromatics unit and run Saudi Arabian crude. It will also produce ethylene, propylene and other petrochemicals.
The proposed site will span about 1,443 hectares in Pengerang.
The report said the development of KPTC-MIRPD will provide greater optimization of investment returns for the infrastructure development necessary to turn Pengerang into an oil and petrochemicals hub. It will bring in foreign investment of MR40 billion ($12.8 billion) and provide significant employment to the area.
Kuokuang had originally planned a new petrochemical project in Taiwan, although this was scrapped last year due to environmental concerns. Then, Malaysian Prime Minister Najib Razak announced in May last year that Malaysia would work with Kuokuang to launch a project in the country.
Petronas last week said it would take a final investment decision on its RAPID project -- which includes a 300,000 b/d refinery -- in March next year, with first production likely in 2017.
