pengerang integrated petroleum complex presentation by

Pengerang Integrated Petroleum Complex

Presentation by Johor Petroleum Development Corporation (JPDC)

Johor Petroleum Development Corporation Berhad | 20161

Copyright © Johor Petroleum Development Corporation Berhad | 2016

Introduction

To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC

Oil & Gas is one of the 12 National Key Economic Areas (NKEAs) in Malaysia’s Economic Transformation Programme (ETP)

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Comms,Content &

Infra

Wholesale& Retail

Oil, Gas & Energy

Palm Oil

HealthServices

FinancialServ &

Capital Mkt

Greater KL

Agriculture

TourismEducation

Electrical& Electronics

Biz Services GROW

DIVERSIFY

SUSTAIN

Build alternative energy capabilities

Grow in downstream

Continue domestic Oil & Gas production

12 NKEAs

Oil, Gas & Energy contributes ~17% of Malaysia’s GDP


Downstream Oil & Gas development in Johor is part of EPP4 and EPP13 under ETP Oil, Gas and Energy (OGE) NKEA

GROWDIVERSIFY

SUSTAIN

1. Enhanced oil recovery2. Develop small fields3. Increase exploration activities Make Malaysia #1 Asian hub for oil field

services

9. Reduce energy bill through energy efficiency

10. Build up solar power capacity11. Ensure best practice nuclear

deployment12. Drive industrial growth in

Sarawak with big hydro

Build alternative energy capabilities

4. Create a regional oil storage and trading hub

5. Unlock latent gas demand through LNG import

Grow in downstreamContinue domestic Oil & Gas production

6. Increase presence of major international oilfield services players

7. Create regional fabrication champions8. Encourage JV with world-class

companies13. Increasing petrochemical output

EPPs

BO

1. Increased oil & gas production abroad

2. Increase volumes in primary logistics3. Increase marketing of petroleum

products

4. Growth driven power demand5. Growth driven transmission and

distribution capacity6. Improve structure of Malaysia

energy supply industry

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Tanjung Bin• Oil storage• Developer :

Seaport Worldwide

• Current storage capacity : 1.15 mil cbm

Tanjung Langsat• Oil storage, marine

services, steel, Oilfield Services and Equipment, chemical

• Developer : Johor Corporation

• Current storage capacity : 820,000 cbm

Pengerang• Oil storage• Developer :

Dialog-Vopak-SSI• Current storage

capacity : 1.3 mil cbm

Singapore

Senai Airport

Target Storage Capacity

3mil cbm


2mil cbm


5mil cbm

2020 GNI impact:

USD0.5 Billion

2020 total new jobs:

800

▪ Demand to build storage capacity for the region▪ Complementing Singapore, the only major independent terminal and storage

facility in South East Asia▪ Potential for oil trading business, development of downstream industry (e.g.:

refinery, oil based petrochemical complex, LNG regasification terminal)

Southern Johor Planned Storage Capacity

10mil cbm

Source : OGE NKEA Lab

EPP4: Malaysia can become a regional oil storage hub with proximity to Singapore, deep water and land availability

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20,000 acres (~80 km2) PETRONAS Pengerang Integrated Complex (PIC) DIALOG-Vopak Deepwater Petroleum Terminal Refineries Petrochemical Plants

2020 GNIRM18.3

Billion

New Jobs8,600

Private Investment

RM89 Billion

Public Investment

RM1.7 Billion

Pengerang, South East of Johor▪ Pengerang Integrated Petroleum

Complex (PIPC)

EPP13 in Johor: Petrochemical Complex will be built in Pengerang

EPP13: Increase in Petrochemical Output

▪ Increase volume of Malaysia’s petrochemical output

▪ Cater to Asia-Pacific region’s demand for premium specialty chemicals

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Overview of Johor Petroleum Development Corporation (JPDC)


JPDC is a federal Government agency entrusted to plan, coordinate, and promote the development of downstream O&G in Johor

2Singapore

2

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Johor Bahru

Tanjung Langsat

Pengerang

TanjungBin

MANDATES

To promote and market Johor’ downstream oil & gas industry to potential investors

To coordinate and drive the execution of development projects in Johor

Coordination

Promotion & Marketing

To identify and manage funds required for financing the downstream oil and gas development in Johor

Sufficient Fund

To plan and develop strategies for the downstream oil and gas development in Johor

Integrated Planning

To ensure the availability of industry ready workforce to drive and sustain PIPC’s development growth

Industry Ready

Workforce

To enhance inclusiveness towards an equitable society with more access to economic opportunities in PIPC

Local Participation

1

2

4

3

5

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South China Sea

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JPDC’s Board of DirectorsCo-Chairman

Johor Chief MinisterY.A.B Dato’ Mohamed

Khaled Nordin

Co-ChairmanCEO of PEMANDUYBhg Dato’ Sri Idris

Jala

FEDERAL

Secretary General of Treasury, Ministry of

FinanceY.Bhg. Tan Sri Dr

Mohd Irwan SerigarAbdullah

Deputy General (Sectoral),

Economic Planning Unit

Y.Bhg. Datuk Allauddin bin Hj. Anuar

President / CEO, MPRC

Y.Bhg. Datuk Shahrol Azral Ibrahim Halmi

STATE

Johor State EXCO Member

Y.B. Datuk Ir. Haji Hasni Haji

Mohammad

Johor State Secretary

Y.B. Dato’ Haji Ismail bin Karim

Director, UPEN Johor

Tuan Haji Salehuddin bin Haji Hassan

INDUSTRY

Petrochemicals Advisor

En. Md Arif Mahmood

Oil Storage & Trading AdvisorY.Bhg. Tan Sri Dr. Ngau Boon Keat

SPECIALISED BODY

Chief Executive, JPDC

En. Mohd Yazid Ja’afar

9•To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 8


Overview of Pengerang Integrated Petroleum Complex (PIPC)

Pengerang is chosen as the location to build a world class petrochemical hub due to strategic reasons


Access to existing major international shipping lanes

• Middle East – Singapore – China

Safe and sheltered harbour• No breakwater required with

sufficient seagoing passage for VLCCs and ULCCs

Environmentally friendly• Very few Environmentally

Sensitive Areas (ESAs) which are easily preserved

Leveraging low transportation costs• Water depth of 24m enables Very

Large Crude Carriers (VLCCs) and Ultra Large Crude Carriers (ULCCs)

Proximity to an existing major trading hub

• Adjacent to Singapore

Availability of sufficient development land

• A single candidate plot in excess of 20,000 acres

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PIPC in numbers

1 million bbl/day Refining Capacity

3.5 MTARGT Capacity

11.8 MTAPetrochemical Production

5 million m3

Oil Storage Capacity

1,220 MWCo-generation Plant

520 MLDRaw water supply

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Pengerang Integrated Petroleum Complex (PIPC)

To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 5

Refineries and Naphtha CrackersDedicated Jetties

Medium & Light Industries

An Integrated Petroleum Complex that will house StorageFacilities, Oil Refineries, Petrochemical Plants, LNGRegasification Facility and Other Supporting Facilities


Future Development : High Speed Rail (Singapore-Johor-Kuala Lumpur) & Rapid Transit System (Singapore-JB)

… and also well connected with existing logistics infrastructure

Jurong Island

Senai Desaru Expressway

SINGAPORE

MALAYSIA

PIPC

To Senai Airport 100 km

To Johor Port 72 km

To Tg Langsat Port 70 km

To Tg Pelepas Port 132 km To Changi Airport 26 km

Johor Bahru

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A comprehensive PIPC Masterplan to ensure development success

Pengerang Integrated Complex (PIC)

Plastics & Fine Chemicals Park

Downstream finished product zone

Medium & Light Industries Hub

CommercialServices Hub

SolidLogistics Hub

Future integrated investor 3



Pengerang Deepwater Terminal (PDT)

CUF WMC

ERC


In tandem with the commitment from investors, the Government is heavily investing in infrastructure & public amenities for PIPC

Drainage R2a (1.5 km)Stage: TenderingCommencement: April 2016Completion: April 2019

Main Drainage in PIPC

Drainage R3 (4.9 km)Stage: TenderingCommencement: April 2016Completion: April 2019

Drainage R1 (7.3 km)Stage: DesignCommencement: April 2017Completion: April 2019

Drainage R2 (6.4 km)Stage: TenderingCommencement: April 2016Completion: April 2019

New Ring Road (15.0 km)Stage: ConstructionCommencement: 18 Mac 2015Completion: January 2017

Upgrading of FT92 road (27.0 km)

Stage: ConstructionCommencement: 3 August 2015Completion: 30 July 2017

New P1 Road (7.0 km)Stage: TenderingCommencement: May 2016Completion: May 2019

New P4 Road (7.0 km)Stage: DesignCommencement: December 2016Completion: December 2018

New P3 Road (4.2 km)Stage: DesignCommencement: December 2016Completion: December 2018

New P2 Road (5.6 km)Stage: TenderingCommencement: May 2016Completion: May 2019

NRR

FT92

P1

P2

P3

P4

R1

R3R2a

R2

New Sg. Rengit Fire Station

New Punggai Fire Station

Upgrading of Medical Clinic

New Police Station

New Schools

New Sebana Fire Station

• Overall Development Progress as at 29th

August 2016 : 17.81% (vs plan 18.87%) with a total of 25 packages • Completed: 7 packages• Construction: 13 packages• Planning Stage, Design & Procurement: 5

packages


Overview of DIALOG Pengerang Deepwater Terminal (PDT)

DIALOG Pengerang Deepwater Terminal completed its first phase development in December 2014 and the second phase is currently progressing positively

500 acres reclaimed land Deepwater (24 meters) jetty facilities

capable of handling VLCCs and ULCCs

Sheltered harbour

"To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub“ - JPDC

Petroleum TerminalTarget Storage Capacity

5mil cbm

Phase 2 : 157 acres + Capacity of 2.1 mil cbm+ 12 berths = RM6.3 billion

o Independent for storage, blending and distribution of crude oil and petroleum products

o Started operation April 2014o Completed December 2014

o Dedicated to PETRONAS RAPID for petroleum and petrochemical storage

o Target commissioning Q1 2019

LNG Terminalo LNG regasification facilities; a regasification

terminal (RGT-2) unit and two units (2 x 200,000 cbm) of LNG storage tanks

o The RGT-2 will have a capacity of 3.5 mtpa and will provide primary gas supply to the RAPID, Pengerang Cogeneration Plant (PCP) and the Peninsular Gas Utilization (PGU)

o Target commissioning Q4 2017

Phase 1 : 150 acres + Capacity of 1.3 mil cbm+ 6 berths = RM2 billion

DIALOG Pengerang Deepwater Terminal in illustration and progress in pictures


Source: DIALOG

LNG



Source: DIALOG

SPV 1 (Completed December 2014)



Source: DIALOG

PDT Phase 2 (Construction in progress)


Overview of PETRONAS PengerangIntegrated Complex (PIC)

Final Investment Decision (FID) for the development of Pengerang Integrated Complex (PIC) was approved on 3 April 2014


Refinery and Petrochemical Integrated Development (RAPID)

• Refinery (300k bbl/d refining capacity)• Naphtha cracker• Petrochemical plants

LNG regasification plant (RGT2)

Power generation plant(PCP)

Air separation unit(ASU)

Dedicated storage terminal(SPV2)

Raw water supply project(PAMER)

Supported by associated facilities

Utilities and facilities(UF)

PIC

PETRONAS Refinery and Petrochemical Integrated Development (RAPID) Configuration



Construction of Refineries

PETRONAS Pengerang Integrated Complex (PIC) Project Progress

Source: PETRONAS


Construction of Steam Cracker Complex


Source: PETRONAS


Construction of Regasification Terminal 2 (RGT-2)


Source: PETRONAS


Construction of Pengerang Co-generation Plant (PCP)


Source: PETRONAS

Investment Opportunities by PETRONAS Chemicals Group



.. and with other milestones achieved according to plan, the dream will soon become a reality..

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DIALOGPhase 2 & RGT2

construction commenced

Q1 2015

DIALOGPhase 1 operation

commenced12 April 2014

PETRONAS GAS

RGT2 operation commences

Q4 2017

PETRONASRefinery Ready

For Start-UpQ1 2019

DIALOGPhase 2 operation

commencesQ1 2019

TODAY

2014 2015 2017 2018 2019

PETRONASFID – 3 April

2016

PETRONAS Cogen Plant 1st

Commercial OperationJune 2017


Industrial Park Development in PIPC

PIPC Industrial Park Development by :

i. Pengerang Industrial Park (PIP) by JCorp


Pengerang Industrial Park (PIP) by JCorp

The Overview


• The only large scale industrial park in

Pengerang for SME’s.

• Accessibility to RAPID, Highways,

Roads and Haulage Road.

• PIP is within PIPC project area and the

project consist of :

o 1,231 acres of SME’s Industrial

Park (phase1 : 786 acres ; phase 2

: 445 acres).

o 243 acres of Commercial &

Residential development.

Pengerang Industrial Park (PIP) by JCorp

Proposed Project Timeline


PIPC Industrial Park Development by :

ii. Sg. Rengit Industrial Estate by DIALOG


Sg. Rengit Industrial Estate is within PIPC

project area. The industrial park consist of :

• 333 acres of potential industries that can be

accommodated into the industrial park

• Type of potential industries are :

• petroleum & chemical storage facilities

& warehouses

• petrochemical manufacturing

industries

• bottling plants and drumming plants

• open yard storages

• other oil & gas related manufacturing

industries/activities.

Sg. Rengit Industrial Estate by DIALOG

The Overview



Development Component

Unit / Plot Size(Acre)

Commercial Zone

1 1.12

DetachedIndustry

67 194.06

Twin Industry(929 m2)

62 35.19

Cluster Industry(2090 m2)

36 8.80

TerraceIndustry(279 m2)

95 6.75

Future Development

N/A 14.87


The Development Component


Proposed Project Timeline


EIAApproved

Development Order

Submitted to Local Authority

May2016

July2016

June2016

Development Order Expected

To Be Approved

Environmental Impact Assessment (EIA)

Submitted to Department of

Environment (DOE)

Oct2016

Oct2019

Ready Built Factory For

Lease

Land clearance and site preparation (1 ½ year)

Vacant Possession

April2018


Conclusion


Bringing huge benefits to the country and ample opportunities for businesses..

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Helping transform Malaysia into a

high income nation

Diversifying the country’s economy

Increasing Malaysia’s export capacity

Opening up of Oil & Gas tradingopportunities

Providing the nation’s growing energy needs


PIPC has secured commitment from private investors and strong support from the Government of Malaysia..

National Project of strategic importance

PIPC is already operating! Independent storage started April 2014

PIC project is progressing at 39% and is on track to achieve PIC start-up Q1 2019

Public and private players are committed to realise the dream of an oil and gas hub in Pengerang

Thank you


Main OfficeSuite 17.03A, Level 17,Menara MSC Cyberport,No. 5, Jalan Bukit Meldrum,80300 Johor Bahru,Johor, Malaysia.Tel : +607 – 267 2900Fax : +607 – 267 2999

[email protected]

facebook.com/johorpetroleumdevelopmentcorporationberhad

www.jpdc.gov.my

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