Melaka PSR-2 Refinery

The brand new one hundred,000 bpd Melaka refinery generally known as PSR-2, is operated by the Malaysian Refining Corporation Sdn Bhd (MRC), a joint venture of Conoco (forty%), Petronas of Malaysia (45%) and Statoil (15%). The refinery uses Conoco’s proprietary delayed coking expertise to maximise manufacturing of diesel gas, which is in high demand in the region. In July 2001 Petronas acquired a further eight% fairness in MRC, bringing complete shares of MRC to fifty three%.

PSR-2 Course of Items

6 m diameter pressure vessel 500 cubic metersAlong with the hydrocracker, the project additionally required the construction of main PSR-2 course of models. These include a 62,000 barrels/day vacuum distillation unit, a 26,000 barrels/day catalytic reformer, a 35,000 barrels/day desulfurization unit and a 21,000 barrels/day delayed coker, which is able to utilise Conoco’s proprietary petroleum coking expertise.

The engineering, procurement, building and commissioning (EPCC) contract for PSR-2 was awarded to a four-firm consortium composed of Chiyoda Corporation, MMC Engineering Services, Chiyoda Malaysia and Mitsui & Co. LTD of Japan.

Conoco used its share of refined products from PSR-2, including LPG, a full range of gasolines, kerosene, jet-A1 and diesel, to supply the company’s current and deliberate advertising and marketing operations within the area. The PSR-2 refinery shall be constructed adjoining to the Petronas- owned PSR-1 refinery and the two refineries will share some common facilities.

MARKET RATIONALE

The refinery is the anchor for Conoco’s continued downstream growth in Asia Pacific and can ensure a supply of high quality merchandise to gasoline the growth of Sime Conoco Power in Malaysia and the continued enlargement of Conoco’s advertising operations in Thailand.

Conoco will use its share of refined merchandise produced by PSR-2 to support the company’s entry into Malaysia’s motor fuels retail market and the continued enlargement of Conoco’s JET-branded retail advertising operations in Thailand.

PSR-2 is the first refinery in Southeast Asia to use Conoco’s proprietary delayed coking technology. This will allow PSR-2 to economically upgrade lower-valued, backside-of-the-barrel feedstocks, to larger-valued liquid products.

MELAKA REFINERY Project TIMESCALE

On November 9th 1994, following an 18 month feasibility research, Conoco and Petronas, agreed to assemble and function the Melaka refinery.

In January 1999 completion of the development of a 28,500 barrels/day hydrocracker, meant that the crude oil refinery in Melaka, Malaysia was absolutely operational.

CONTRACTORS

On July 1,1993, MRC appointed Foster Wheeler (Malaysia) Sdn Bhd as Project Administration Marketing consultant (PMC) for the PSR-2 Stage 1 Venture. Of the process models comprising the complicated, Foster Wheeler provided the design for crude distillation, vacuum distillation, saturated gas restoration, amine regeneration (2 trains), sour water therapy (2 trains), hydrogen assortment and distribution system, delayed coker light-ends, and a Foster Wheeler licensed hydrogen production unit.

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