19 May 2014

KUALA LUMPUR (May 16): Petronas subsidiary Pengerang Power Sdn Bhd has awarded the engineering, procurement, construction and commissioning (EPCC) contract for its Pengerang Co-generation Plant (PCP) project in Johor to a consortium of Siemens AG, Siemens Malaysia and MMC Engineering Services Sdn Bhd.

Petronas said the contract, awarded on May 12, requires the consortium to undertake the design, engineering, procurement, supply, manufacturing, construction, installation, development, testing and commissioning works and warranty for the project.

"The plant's first co-generation unit is expected to be commercially operational by mid-2017," it said in a statement today.

It said the PCP is one of the six associated facilities to be developed within Petronas' Pengerang Integrated Complex (PIC) project and once completed, the power plant would be able to produce 1,220 megawatts of power and provide reliable and continuous supply of steam of up to 1,480 tonnes per hour to the PIC.

Petronas said the project is expected to employ about 2,000 workers during peak construction.

"Permanent employment for competent local workers when the plant is operational is one of the direct benefit of the project, along with other economic spin-off opportunities for the local communities," it said.

Petronas' PIC will house the Refinery and Petrochemicals Integrated Development (RAPID) project and other ancillary facilities which, apart from the PCP, include the Pengerang LNG Re-gasification Terminal, Air Separation Unit, Raw Water Supply Project (PAMER), Crude and Product Tanks as well as centralised and shared utility facilities.

The PIC project is part of the larger Johor State's Pengerang Integrated Petroleum Complex (PIPC) to establish new engines of growth for Malaysia while meeting the country's future energy requirements.

The project is also geared at strengthening Petronas' position as a key player in the Asian chemicals market, focusing on differentiated and specialty chemicals.