KUALA LUMPUR, Jan 27 — The Johor Petroleum Development Corp (JPDC), the coordinator of the Pengerang Integrated Petroleum Complex (PIPC), is expecting a slight delay in the overall completion date of the complex because of challenging economic conditions.
The project, consisting four phases, was earlier earmarked for completion in 2035.
However, Chief Executive Officer Mohd Yazid Ja’far said the first phase, consisting two catalytic projects, namely the Petronas’s Refinery ?and Petrochemical Integrated Development and DIALOG Group’s Pengerang Independent Deepwater Petroleum Terminal, were on track for commencement in 2019.
He was speaking during a luncheon talk organised by the Performance Management & Delivery Unit (PEMANDU) of the Prime Minister’s Office.
The PIPC is one big step in creating value to the downstream oil and gas value chain in Johor.
Sited in Pengerang, the project will house oil refineries, naphtha crackers, petrochemical plants as well as a liquefied natural gas import terminal and a regasification plant.
“We do face difficulty in attracting new investors (into PIPC). A lot of these integrated players are looking back at their investment plan to weather the storm and they have decided to hold back their decision.
“The may take a longer time to evaluate (their investment plan) and choose projects that are really worthwhile going into,” he told reporters after the luncheon talk.
However, Yazid said projects under phase one were progressing according to schedule and without any delay expected.
“We are revising the other three phases (in terms of completion date), to make sure that it make sense. We did the original projection (in 2010) when the oil price was at a healthy level.
“Every five years, the masterplan needs to be reviewed and we plan to do it this year and that would take into the account the current investment scenario,” he said.
Yazid expected the review of the masterplan to be completed by next year and for JPDC to estimate the new completion date for PIPC by then.