Saudi Aramco is planning to deliver the first crude oil cargo to its joint-refinery project with Malaysia’s state-owned Petronas in October, according to a report by Reuters.
The companies are preparing for trial runs at the new downstream complex in Malaysia.
The project named Refinery and Petrochemical Integrated Development (Rapid), is a $27bn complex located 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.
Rapid will contain a 300,000 barrels a day (b/d) refinery and a petrochemical complex with a capacity of 7.7 million tonnes a-year. Refinery operations are set to begin in 2019, with petrochemical operations to follow six to 12 months afterwards.
Saudi Aramco will supply 50 per cent of the refinery’s crude oil with an option of increasing it to 70 per cent.
While the first crude for Rapid has been scheduled for delivery in October, the timeline for trial runs at the new plant has not been firmed up, Reuters said in its report.
Aramco and Petronas approached banks earlier this year to refinance a $8 billion loan for the project.
Aramco and Petronas finalised the deal to invest in the project in March.
You might also like...
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.