Petronas to invest MYR1.5 billion to boost Euro 5 diesel production

Petronas to invest MYR1.5 billion to boost Euro 5 diesel production

Malaysia’s state-owned oil and gas company Petronas, through its subsidiary, Malaysian Refining Company Sdn Bhd (MRCSB), plans to invest more than MYR1.5 billion (USD357 million) to increase production of Euro 5 diesel for the Malaysian market.

Malaysian Refining Company CEO and Managing Director Hashim Majid said the company, which supplies about 70% of petrol and diesel in the country, aspires to become the main producer of Euro 5 diesel by 2020.

Currently, Malaysian Refining Company has a refining capacity of 300,000 barrels of refined petrol and diesel per day. The company said it plans to produce around 30,000 barrels of Euro 5 diesel this year.

“The company targets higher production of Euro 5 diesel for local use by September 2020, whereby the project is 30% complete. For Euro 5 petrol, we expect to produce it fully by 2025, however, this would depend on government approval through the Ministry of Domestic Trade and Consumer Affairs,” he said.

The production of Euro 5 diesel at its refinery in Tangga Batu is something that Malaysia should be proud of because the same products being supplied by Petronasโ€™ competitors are all imported, he said.

“Besides that, the utilisation of Euro 5 is guaranteed to be of higher quality as the sulphur content in the formulation produced by MRCSB is less than 10 [parts per million]. In fact, it also uses the Petronas Fluid Technology Solutions expertise that is being used by the successful Mercedes-AMG Petronas Formula 1 team,” he added.

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