Saudi Aramco has delivered the first shipment of crude oil to its joint venture (JV) refinery in Malaysia with state-owned Petronas, according to a statement it released.

The cargo of 2 million barrels was delivered to the Pengerang Integrated Complex (PIC), the stakes of which Aramco and Petronas equally share, on 24 September.

The crude will be feedstock for the 300,000 barrels a day (b/d) refinery, which is being built within the PIC. A petrochemical plant that is expected to produce 3.3 million tonnes a year of derivative products is also part of the PIC megaproject, will be located in Malaysia’s southern Johor state.

MEED reported that although the first crude cargo for the project was to be delivered in October, the shipment was delivered earlier than expected. The crude, supplied by Aramco, along with oil from Petronas, will be used for the refinery commissioning and testing activities that are scheduled to commence in October.

The construction of the refinery is nearing completion, Aramco said. It is scheduled to be finished by the first quarter of 2019, and will produce a range of refined petroleum products, including gasoline and diesel, that will meet Euro 5 fuel specifications.

Additionally, the refinery will provide feedstock to the adjacent petrochemical facility.

Aramco will supply 50 per cent of the refinery’s crude, with an option of increasing it to 70 per cent, as per the JV agreement.

Malaysia has taken up development of the PIC as part of its massive $27bn Refinery and Petrochemical Integrated Development (Rapid) scheme, to boost the country’s downstream capabilities by developing strategic assets between the Malacca Strait and the South China Sea - the main sea route for Middle East oil and gas bound for China, Japan and South Korea.