JPDC secures over RM5 bil committed investments in Pengerang Integrated Petroleum Complex second phase
20 Apr 2023
Johor Petroleum Development Corp Bhd (JPDC) has secured committed investments of more than RM5 billion in the second phase of its Pengerang Integrated Petroleum Complex (PIPC) amid the recovery post Covid-19.
As of April 6, 2023, committed investments in phase two of PIPC amounted to RM5.05 billion versus JPDC’s 2021 target of attracting RM5 billion worth of investments to the development which spans between 2020 and 2025.
Acting chief executive Izhar Hifnei Ismail said the agency is currently facilitating and assisting several prospective investors in their feasibility studies toward establishing their downstream oil and gas and petrochemical businesses in PIPC.
“For this second phase, we have started to focus on opening new industrial areas such as Pengerang Industrial Park by Johor Corporation. After that, we bring in other players like LG Chem Ltd from South Korea which has a joint venture with Petronas.
“All of these activities are either directly related to the supervision of industrial areas, petrochemicals or support activities for downstream oil and gas or petrochemical activities,” said Izhar Hifnei.
PIPC is a 25-year development between 2013 and 2037 with four phases.
Phase one (2013-2019) saw two catalytic projects being developed. Pengerang Deepwater Terminals is an oil and petroleum-product storage facility with a capacity of up to 5 million cubic metres, supported by deep water jetties. This was developed by Dialog Group Bhd with investments of RM14.71 billion.
The other project is the Pengerang Integrated Complex which comprises refinery and petrochemical facilities and supporting facilities developed by Petronas with investments of US$27 billion.
The federal government and Johor state government have also developed critical infrastructure and social amenities in PIPC worth more than RM3 billion to support industrial growth.
Izhar Hifnei said that with the rapid growth of green technology and sustainability, JPDC is encouraging new investments in the second phase of PIPC to have strong and clear sustainability plans.
He noted that for these companies to invest and raise their capital, their financiers would always scrutinise and evaluate their project proposals in line with environmental, social and governance (ESG) standards.
“To achieve all this, we have found a lot of new proposals to bring in technologies that take into account to produce a lower carbon footprint, for example. The technologies are available and indeed we encourage investors who want to come in with such technologies for PIPC,” he added.
The new investments were mostly from Europe and Asia.
Source: Bernama
