Petronas plans expansion of Melaka refinery

0

KUALA LUMPUR: Petronas is planning to expand its Melaka refinery, its vice-president, Corporate Strategic Planning, Md Arif Mahmood said.

RISING CONCERN: The progress of Petronas’ Gladstone LNG project in Queensland, Australia is dependent on the outcome of the Resource Super Profit Tax imposed by the Australian government.

RISING CONCERN: The progress of Petronas’ Gladstone LNG project in Queensland, Australia is dependent on the outcome of the Resource Super Profit Tax imposed by the Australian government.

“We are currently undertaking a feasibility study,” he said on the sidelines of the 15th Asia Oil and Gas Conference.

According to Md Arif, the feasibility study is expected to be completed within this year but was unable to confirm the exact increase in capacity of the plant.

It is learnt that Petronas is looking at expanding capacity by another 20,000 barrels per day.

The refinery known as PSR-1, is owned and operated by Petronas Penapisan (Melaka) Sdn Bhd, a wholly-owned subsidiary of Petronas.

Completed in 1994, it has a processing capacity of 100,000 barrels per day of sweet crude and condensates.

In another development, he said Australia’s Resource Super Profit Tax is a concern to Petronas in view of its Gladstone liquefied natural gas (LNG) project in Queensland, Australia.

“It is a concern given the investment we have (there) with a local partner.

“As the project is still progressing, we have to determine along the way, whether to move on to the next phase or otherwise,” he said.

As for the LNG plant in Bintulu, Md Arif said there was a small revamp but no real new capacity building.

Petronas, he added, is also on the lookout for more new gas resources from Sabah and Sarawak. – Bernama