29 June, 2018
Malaysia's state-owned oil and gas company Petronas and Saudi Arabian state-owned oil company Aramco announced in March that they established two joint ventures (JV) in Johor in southern Malaysia for the large scale petroleum refining and petrochemical complex construction project (RAPID). As a result, Petronas and Aramco would hold equal interests in the refinery and the petrochemical plant of RAPID. Aramco can supply up to 70% of crude oil as a feedstock to the 300,000b/d refinery. Petroleum products produced in the refinery will be equally allocated to Petronas and Aramco. Main products of the refinery are fuels (gasoline, gas oil) that meet Euro 5 standards and naphtha and liquefied petroleum gas (LPG) which are used as raw materials for petrochemicals. Construction of the RAPID project is 87% completed with the start of operation scheduled for the first quarter in 2019. Aramco plans to expand its global oil refining capacity to 8-10 mil b/d in order to secure outlets for its crude oil. Aramco's active approach to the RAPID project is part of this global strategy.