Communicator

PRefChem Refinery Complex. Credit: prefchem.com

Malaysia’s Pengerang Refining Company (PRefChem Refining) has resumed operations by mid of May at one of its two residue fluid catalytic cracking (RFCC) units at the Johor complex, following an extended shutdown for repairs since late January. The two RFCC units at PRefChem have a combined processing capacity of 170,000 barrels per day (bpd), making them among the largest of their kind in the region

Operational Challenges and Market Impact

• Both RFCC units had previously encountered operational disruptions in the fourth quarter of last year, further impacting production reliability. The recently restarted RFCC unit, which primarily produces gasoline, is not yet operating at full capacity, according to sources familiar with the matter. The unit had been offline since the last week of January due to technical issues, contributing to a significant reduction in overall refinery throughput.
   
• During the shutdown, crude processing rates at the 300,000-bpd refinery dropped to around 50% on average over the past four months. Since the recent restart, sporadic offers for gasoline cargoes loading in June have appeared in the market, signaling a gradual return to normal operations.
   
• In addition to gasoline, the refinery is expected to load 5–6 cargoes of diesel (each 300,000 barrels) in May, according to trade estimates, rebounding from less than 1 million barrels in April.
   
• On the petrochemical side, PRefChem’s only steam cracker, with an ethylene capacity of 1.2 million metric tons per year, has also been offline for repairs since late January. The cracker is slated for a restart in the second half of June, according to industry sources.

Strategic Context

PRefChem, a 50:50 joint venture between Malaysia’s state oil company Petronas and Saudi Aramco, operates the integrated refinery and petrochemical complex at Pengerang, Johor. The facility is a cornerstone of the Pengerang Integrated Complex (PIC), which is Malaysia’s only fully integrated refinery, steam cracker, and petrochemical site. The complex is designed with multiple train configurations—including the two-train RFCC system using Axens technology (R2R) —to enhance production reliability and flexibility. Despite facing recurring operational disruptions since 2023, the company continues to invest in new technologies and capacity expansions to support long-term growth and regional energy security:

• New Projects: The $5.3 billion Pengerang Energy Complex, securing $3.5 billion in financing in December 2024, will add 2.6 million metric tons/year of aromatics capacity by 2028.
   
• Specialty Chemicals: The recently commissioned isononanol plant (250,000 tons/year) at the Pengerang Petrochemicals Complex achieved on-spec production in 2024, targeting full capacity by 2025.

Market Positioning

PRefChem remains strategically positioned as a major supplier of Euro 5-grade fuels and petrochemical feedstocks in Southeast Asia:

• Euro 5 Fuels: The refinery produces high-specification gasoline and diesel.
   
• Integrated Complex: The site houses 3.4 million tons/year of petrochemical capacity, including propylene and ethylene, though recent spot propylene tenders suggest inventory management amid cracker downtime.

Analysts note that while near-term operational reliability concerns persist, PRefChem's long-term growth pipeline and low-carbon investments position it to capitalize on Southeast Asia's rising petrochemical demand.

#prefchem  #saudiaramco  #petronas  #pengerang  #rfcc  #gasoline  #diesel  #steamcracker  #malaysia 

AXENS News, 17^th June 2009, retrieved via the Internet Archive from 3^rd Nov 2011.

Nghi Son Refinery & Petrochemical LLC (NSRP) has awarded Axens the basic engineering design contracts for some of the units of the new 200,000 barrel per day (bpd) refinery which is to be constructed in Thanh Hoa province located in the Northern part of Vietnam.
Axens will supply the following process technologies for the refinery:

R2R™ - Residue Fluidized catalytic cracking (RFCC) unit;

Prime-D™ - Gas Oil desulfurization unit;

Prime-K™ - Kerosene desulfurization unit.

The refinery units will be provided with the latest advanced technologies making this one of the most modern refinery complexes in the world. The facility is scheduled and targeted to be operational in 2013.

The RFCC unit will incorporate advanced features to efficiently crack residue feed to maximize gasoline and propylene production. Polymer-grade propylene will be supplied to a downstream polypropylene unit. Axens’ RFCC is part of the FCC Technology Alliance between Axens, Shaw, Total and IFP.

Axens is a leading provider of clean fuels solutions. Axens’ desulfurization technologies are the benchmark for ultra-low sulfur middle distillate production. Both desulfurization units will employ the latest high activity hydrotreating catalysts and high performance reactor internals.

___________________
R2R, Prime-D, Prime-K are proprietary commercial names of Axens.

Nghi Son Refinery & Petrochemical LLC
Nghi Son Refinery and Petrochemical Limited Liability Company (NSRP) is a Joint Venture Company formed by Vietnam Oil and Gas Group, Vietnam; Idemitsu Kosan Co., Ltd, Japan; Kuwait Petroleum Europe B.V., Netherlands and Mitsui Chemicals, Inc., Japan.

#axens  #rfcc  #nsrp  #vietnam  #gasoline  #propylene  #gasoil  #kerosene  #desulfurization