Business News

Petronas calls for Rapid tender

Tuesday, 11 June 2013

PETALING JAYA: Petroliam Nasional Bhd (Petronas) has called for a tender under Package 8 of the Refinery and Petrochemicals Integrated Development (Rapid) project in Pengerang, Johor, despite recent news flows that the commissioning of the plant had been delayed.

According to Petronas in its advertisement yesterday, Package 8 is for the engineering, procurement, construction and commissioning (EPCC) of the cumene, phenol and bis-phenol A production units of the project.

The key pre-qualification for the tender is that the prospective bidder, consortium or joint venture must have relevant experience in the mentioned EPCC production units. However, the contract value was not mentioned.

The cumene process is an industrial process for developing phenol and acetone from benzene and propylene.

The production of phenol from benzene is the first step in the manufacturing of some very important polymers, including polyamides (nylons), polycarbonates and phenolic resins.

The RM60bil Rapid project proposed by Petronas is, by far, the largest liquid-based green-field downstream undertaking in Malaysia. It was reported last week that the commissioning of the plant had been pushed back to end-2016 or early-2017 due to a delay in the state government’s relocation of residents.

The project constitutes the development of a refinery, a naptha steam cracker, polymers and specialty petrochemical plants.

When completed, it will have a 300,000-barrels-per-day refinery to supply the petrochemical complex, apart from producing a host of refined petroleum products, including petrol and diesel that meet the Euro 4 and Euro 5 fuel specifications.

Previously, Dialog E&C Sdn Bhd, a wholly-owned subsidiary of Dialog Group Bhd, had secured an EPCC contract and an alliance agreement from Pengerang Independent Terminals Sdn Bhd worth RM1.9bil.

Also, Mudajaya Group Bhd, as part of a consortium comprising Alstom and Japan’s Sumitomo, has submitted its pre-qualification tender for the 1,300MW gas-fired power plant in Rapid. The consortium has made a bid for the EPCC portion of the project.

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