His Royal Highness the Sultan of Johor, Sultan Ibrahim Ibni Almarhum Sultan Iskandar, today launched Malaysia’s largest refinery and petrochemical venture, the PETRONAS Refinery and Petrochemical Integrated Development (RAPID) project, which has the potential of turning Southern Johor into a new petroleum and petrochemical hub in the country.

The launch marked an important milestone for the development of the RM60-billion project which will pave the way for PETRONAS to further grow and add value to Malaysia’s oil, gas and petrochemical industry and spur domestic and foreign direct investments in the country.

Held near RAPID’s proposed project site in Pengerang, Johor, the launch was also graced by the presence of Prime Minister Dato’ Sri Mohd Najib Tun Abdul Razak, Johor Menteri Besar Dato’ Abdul Ghani Othman and PETRONAS’ President and Chief Executive Officer Dato’ Shamsul Azhar Abbas.

With a capacity to refine 300,000 barrels per day of imported crude oil, RAPID’s proposed refinery will act as the backbone of the project that will supply feedstock for the petrochemical complex. It will also produce a host of refined petroleum products, including gasoline and diesel that meet the Euro 4 and Euro 5 fuel specifications.

The petrochemical component of the project will allow PETRONAS to expand its products portfolio from commodity petrochemicals to premium differentiated and specialty chemicals, capitalising on the growing demand for these higher value products in the Asia Pacific region.

To support the development of RAPID, PETRONAS is also assessing the feasibility of developing a new liquefied natural gas (LNG) receiving and re-gasification terminal and a co-generation power plant.

Like other PETRONAS’ projects, RAPID will be developed and implemented according to stringent international regulatory standards, as well as Malaysia’s Department of Environment (DOE) and Department of Occupational Safety and Health (DOSH) standards. It will also employ best-in-class technologies that have been adopted in advanced countries with stringent environmental regulations.

RAPID’s implementation is aligned with the Government’s strategies to establish new engines of growth for Malaysia and contributes towards raising incomes and improving the people’s quality of life.

The project, which is greater in scale and scope than that of PETRONAS’ Melaka, Kertih and Gebeng complexes combined, has the potential to create multiple economic spin-offs for the oil and gas industry, develop downstream manufacturing industries, spur township development and infrastructures as well as provide new employment opportunities in the country, especially in Pengerang.

Coupled with the existing oil, gas and petrochemical facilities in the country, RAPID also supports the Government’s aspiration to turn Malaysia into a leading petroleum industry hub in the region.

During its construction, the project is expected to require more than 40,000 contract-based workers. Upon completion, the project will offer about 4,000 new permanent employments for qualified Malaysians in the premium high-end technology value chain, creating a new generation of oil and petrochemical professionals.

PETRONAS has already started making preparations to ensure the availability of qualified and trained personnel to work at the various plants and facilities within the RAPID complex.

In addition, other long-term employment opportunities are expected to be created by service providers, suppliers, maintenance companies and related industries in the southern region to support the operation of the complex.

RAPID’s project implementation is expected to commence by mid 2013, after PETRONAS reaches its final investment decision (FID).