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Saudi Aramco aims to make Pengerang Hub largest in Southeast Asia

Saudi Aramco, a global leader in integrated energy and chemicals, is setting its sights on expanding its downstream activities in Malaysia. The company’s ambitious goal is to transform the Pengerang Integrated Complex (PIC), PETRONAS’ largest downstream greenfield development, into the largest hub in Southeast Asia. 

In March 2018, PETRONAS and Saudi Aramco concluded the Share Purchase Agreement for equal ownership and participation in the operations of the refinery, cracker and selected petrochemical facilities in the PIC.

Located in Johor, Malaysia, in a 6,303-acre site, the  Pengerang Integrated Complex has a production capacity of 300,000 barrels of crude oil per day, producing a range of refined petroleum products (including gasoline and diesel fuel) that meet Euro 5 fuel specifications. Additionally, the refinery provides feedstock for the integrated petrochemicals complex within the PIC, which has the capacity to produce 3.3 million tonnes per annum.

Mohammed Y Al Qahtani, Aramco president (Downstream), said the company, together with its partner Malaysia’s state-owned oil and gas company PETRONAS, is exploring PIC’s potential expansion.

During his visit to Riyadh, Saudi Arabia, in October 2023, Malaysian Prime Minister Datuk Seri Anwar Ibrahim noted that Aramco is committed to expanding PIC’s facilities. The expansion will include petrochemical and gas downstream activities.

Saudi Aramco’s focus on expanding its downstream activities in Malaysia, particularly through the development of the Pengerang Integrated Complex, reflects the company’s strategic vision for growth and diversification. As Aramco continues to enhance its global footprint, the PIC is poised to become a pivotal hub in Southeast Asia’s energy landscape.

Aramco’s downstream segment encompasses oil refining, petrochemicals, base oils and lubricants, retail operations, distribution, supply and trading, as well as power generation. These activities support Aramco’s upstream and downstream operations by optimising crude oil sales and product placement through an extensive infrastructure network of pipelines, terminals, and access to shipping and logistics resources.