PETRONAS Kicks Off Its Pengerang Co-Generation Power Plant

Pengerang, 3 November 2014 – PETRONAS moves a step closer towards realising the development of its Pengerang Integrated Complex (PIC) with the official groundbreaking for its Pengerang Co-Generation Plant (PCP). 

The PCP is expected to power the entire PIC by generating 1,220 megawatts of electricity as well as provide reliable and continuous supply of steam up to 1,480 tonnes per hour for plants within the complex. 

The Pengerang Co-generation Plant (PCP), to be built by a consortium comprising Siemens AG, Siemens Malaysia and MMC Engineering Sdn Bhd, will have four co-generation units, with the first unit expected to be commercially operational by mid-2017. 

“As one of the most critical support facilities developed within the PIC, PCP 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 the Peninsular Power Grid,” PETRONAS’ Vice President, Infrastructure and Utilities, Ir Pramod Kumar Karunakaran said at the ground breaking ceremony of the PCP project here today. 

The ceremony was graced by the Johor Public Works, Rural and Regional Development Committee Chairman, Datuk Ir. Hasni Haji Mohammad on behalf of Johor Menteri Besar, Dato’ Seri Mohamed Khaled Nordin. 
Also present were PETRONAS Chief Operating Officer and Executive Vice President & CEO Downstream, Datuk Wan Zulkiflee Wan Ariffin, and Siemens Power and Gas Division CEO, Dr Roland Fischer. 

The PETRONAS’ PIC will house the Refinery and Petrochemicals Integrated Development (RAPID) project and other ancillary facilities which, apart from the PCP, include the Pengerang LNG Re-gasification Terminal, Air Separation Unit, Raw Water Supply Project (PAMER), Crude and Product Tanks as well as centralised and shared utility facilities. 

At the peak of its construction, the PCP is expected to require about 2,000 workers with various disciplines and skills. Once it is operational, it will also offer permanent job opportunities to skilled and competent local workers. In addition, the project is expected to create various economic spin-offs which will benefit the communities around the project. 

The PIC project is part of the Pengerang Integrated Petroleum Complex (PIPC), developed to establish new engines of growth for Malaysia. It is also expected to strengthen PETRONAS’ position as a key player in the Asian chemicals market, focusing on differentiated and specialty chemicals. 

Developed within a 6,242-acre site, the PIC will involve an investment of about US$27 billion and is poised for its refinery start-up in early 2019. 

With its strategic location along one of the world’s busiest shipping lanes and its proximity to an international trading hub, the PIC is well positioned to be the next regional downstream oil and gas industrial hub.