Pengerang Integrated Petroleum Complex (PIPC)

Pengerang Integrated Petroleum Complex

Presentation by Johor Petroleum Development Corporation (JPDC)

Johor Petroleum Development Corporation Berhad | 2016 1 Introduction

Programme (ETP) Oil, Gas & Energy contributes ~17% of Malaysia’s GDP

Financial Tourism Serv & Education Capital Mkt SUSTAIN

Greater Wholesale Continue domestic Oil & Gas KL & Retail production

Biz Oil, Gas & Services Energy GROW 12 NKEAs Grow in downstream Agri Electrical culture & Electronics

Comms, Health Content & Services DIVERSIFY Infra Palm Oil Build alternative energy capabilities

To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 3 Downstream Oil & Gas development in Johor is part of EPP4 and EPP13 under ETP Oil, Gas and Energy (OGE) NKEA

DIVERSIFY

GROW Build alternative energy capabilities SUSTAIN Grow in downstream Continue domestic Oil & Gas 4. Create a regional oil storage and 9. Reduce energy bill through production trading hub energy efficiency 10. Build up solar power capacity 1. Enhanced oil recovery 5. Unlock latent gas demand through LNG import 11. Ensure best practice nuclear 2. Develop small fields deployment 3. Increase exploration activities Make Malaysia #1 Asian hub for oil field 12. Drive industrial growth in EPPs services Sarawak with big hydro 6. Increase presence of major international oilfield services players 7. Create regional fabrication champions 8. Encourage JV with world-class companies 13. Increasing petrochemical output

1. Increased oil & gas production 2. Increase volumes in primary logistics 4. Growth driven power demand abroad 3. Increase marketing of petroleum 5. Growth driven transmission and BO products distribution capacity 6. Improve structure of Malaysia energy supply industry

To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 4 EPP4: Malaysia can become a regional oil storage hub with proximity to Singapore, deep water and land availability

▪ Demand to build storage capacity for the region 2020 GNI 2020 total impact: ▪ Complementing Singapore, the only major independent terminal and storage new jobs: USD0.5 facility in South East AsiaSenai Airport 800 ▪ Potential for oil trading business, development of downstream industry (e.g.: Billion refinery, oil based petrochemical complex, LNG regasification terminal)

Southern Johor Planned Storage Capacity 10 mil cbm Pengerang • Oil storage • Developer : Dialog-Vopak-SSI Tanjung Langsat • Current storage • Oil storage, marine capacity : services, steel, Target Storage Capacity 1.3 mil cbm Tanjung Bin Oilfield Services Target Storage Capacity • Oil storage and Equipment, 2 • Developer : chemical mil cbm Seaport • Developer : Worldwide Target Storage Capacity Johor Corporation 5 mil cbm • Current storage • Current storage capacity : 3 capacity : 1.15 mil cbm mil cbm 820,000 cbm Singapore

Source : OGE NKEA Lab

To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 5 EPP13 in Johor: Petrochemical Complex will be built in Pengerang

EPP13: Increase in Petrochemical Output

▪ Increase volume of Malaysia’s petrochemical output

▪ Cater to Asia-Pacific region’s demand for premium specialty chemicals

Pengerang, South East of Johor ▪ Pengerang Integrated Petroleum Complex (PIPC)

. 20,000 acres (~80 km2)

Private Public . PETRONAS Pengerang Integrated Complex (PIC) 2020 GNI New Jobs Investment Investment . DIALOG-Vopak Deepwater Petroleum Terminal RM18.3 8,600 RM89 RM1.7 . Refineries Billion Billion Billion . Petrochemical Plants

To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 6 Overview of Johor Petroleum Development Corporation (JPDC)

1 4 To plan and develop strategies for the To promote and market Johor’ Integrated downstream oil and gas development in Promotion & downstream oil & gas industry to Planning Marketing Johor potential investors

5 2 To identify and manage funds required Sufficient Industry To ensure the availability of industry Fund for financing the downstream oil and gas Ready ready workforce to drive and sustain development in Johor Workforce PIPC’s development growth

3 6 To coordinate and drive the execution of Local To enhance inclusiveness towards an Coordination development projects in Johor Participation equitable society with more access to economic opportunities in PIPC

Tanjung South China Sea Johor Bahru Langsat 2 Pengerang

Singapore 1 2 Tanjung 3 Bin

To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 2 JPDC’s Board of Directors

Co-Chairman Co-Chairman Johor Chief Minister CEO of PEMANDU Y.A.B Dato’ Mohamed YBhg Dato’ Sri Idris Khaled Nordin Jala

SPECIALISED FEDERAL STATE INDUSTRY BODY

Secretary General of Johor State EXCO Treasury, Ministry of Chief Executive, Member Petrochemicals Finance Y.B. Datuk Ir. Haji JPDC Y.Bhg. Tan Sri Dr Advisor En. Mohd Yazid Hasni Haji En. Md Arif Mahmood Mohd Irwan Serigar Ja’afar Mohammad Abdullah

Deputy General (Sectoral), Johor State Oil Storage & Economic Planning Secretary Trading Advisor Unit Y.B. Dato’ Haji Ismail Y.Bhg. Tan Sri Dr. Y.Bhg. Datuk Allauddin bin Karim Ngau Boon Keat bin Hj. Anuar

President / CEO, Director, UPEN MPRC Johor Y.Bhg. Datuk Shahrol Tuan Haji Salehuddin Azral Ibrahim Halmi bin Haji Hassan

•To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 89 Overview of Pengerang Integrated Petroleum Complex (PIPC)

Access to existing major international shipping lanes • Middle East – Singapore – China

Leveraging low transportation costs • Water depth of 24m enables Very Large Crude Carriers (VLCCs) and Ultra Large Crude Carriers (ULCCs)

Safe and sheltered harbour • No breakwater required with sufficient seagoing passage for VLCCs and ULCCs

Availability of sufficient development land • A single candidate plot in excess of 20,000 acres

Environmentally friendly • Very few Environmentally Sensitive Areas (ESAs) which are easily preserved

Proximity to an existing major trading hub • Adjacent to Singapore

To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 10 PIPC in numbers

1 million bbl/day 1,220 MW Refining Capacity Co-generation Plant

11.8 MTA 3.5 MTA Petrochemical Production RGT Capacity

5 million m3 520 MLD Oil Storage Capacity Raw water supply

To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 6 An Integrated Petroleum Complex that will house Storage Facilities, Oil Refineries, Petrochemical Plants, LNG Regasification Facility and Other Supporting Facilities

Pengerang Integrated Petroleum Complex (PIPC)

Dedicated Jetties Refineries and Naphtha Crackers

Medium & Light Industries

To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 5 … and also well connected with existing logistics infrastructure To Senai Airport 100 km MALAYSIA

Senai Desaru Expressway

Johor Bahru

To Johor Port 72 km

To Tg Langsat Port 70 km

SINGAPORE PIPC

To Tg Pelepas Port 132 km To Changi Airport 26 km

Jurong Island

Future Development : High Speed Rail (Singapore-Johor-Kuala Lumpur) & Rapid Transit System (Singapore-JB)

To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 14 A comprehensive PIPC Masterplan to ensure development success

Plastics & Fine Downstream finished Medium & Light Chemicals Park product zone Industries Hub

ERC Future integrated investor 3 Future integrated investor 2

CUF WMC

Future integrated investor 1

Pengerang Integrated Pengerang Deepwater Commercial Solid Complex (PIC) Terminal (PDT) Services Hub Logistics Hub

To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 8 In tandem with the commitment from investors, the Government is heavily investing in infrastructure & public amenities for PIPC

Upgrading of FT92 road FT92 (27.0 km) Main Drainage in PIPC Stage: Construction Commencement: 3 August 2015 New Sebana Fire Station Completion: 30 July 2017 Drainage R1 (7.3 km) New Ring Road (15.0 km) Stage: Design Stage: Construction P4 New P4 Road (7.0 km) Commencement: April 2017 Commencement: 18 Mac 2015 Stage: Design Completion: April 2019 Completion: January 2017 Commencement: December 2016 Completion: December 2018 Drainage R2 (6.4 km) NRR Stage: Tendering New Punggai Fire Commencement: April 2016 Station Completion: April 2019 New P1 Road (7.0 km) New Police P1 Station Stage: Tendering R3 Commencement: May 2016 R2a New Schools Drainage R2a (1.5 km) Completion: May 2019 Stage: Tendering P2 New Sg. Rengit Fire Commencement: April 2016 New P2 Road (5.6 km) Station Completion: April 2019 Stage: Tendering Commencement: May 2016 Upgrading of Medical Completion: May 2019 Clinic Drainage R3 (4.9 km) R2 th Stage: Tendering • Overall Development Progress as at 29 R1 Commencement: April 2016 August 2016 : 17.81% (vs plan 18.87%) with a P3 New P3 Road (4.2 km) Completion: April 2019 total of 25 packages Stage: Design • Completed: 7 packages • Construction: 13 packages Commencement: December 2016 • Planning Stage, Design & Procurement: 5 Completion: December 2018 packages

To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC Overview of DIALOG Pengerang Deepwater Terminal (PDT)

Copyright © Johor Petroleum Development Corporation Berhad | 2016 DIALOG Pengerang Deepwater Terminal completed its first phase development in December 2014 and the second phase is currently progressing positively

Target Storage Capacity Petroleum Terminal 5 Phase 1 : 150 acres + Capacity of 1.3 mil cbm mil cbm + 6 berths = RM2 billion o Independent for storage, blending and distribution of crude oil and petroleum products o Started operation April 2014 o Completed December 2014 Phase 2 : 157 acres + Capacity of 2.1 mil cbm + 12 berths = RM6.3 billion o Dedicated to PETRONAS RAPID for petroleum and petrochemical storage . 500 acres reclaimed land o Target commissioning Q1 2019 . Deepwater (24 meters) jetty facilities capable of handling VLCCs and LNG Terminal ULCCs o LNG regasification facilities; a regasification . Sheltered harbour terminal (RGT-2) unit and two units (2 x 200,000 cbm) of LNG storage tanks o The RGT-2 will have a capacity of 3.5 mtpa and will provide primary gas supply to the RAPID, Pengerang Cogeneration Plant (PCP) and the Peninsular Gas Utilization (PGU) o Target commissioning Q4 2017

"To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub“ - JPDC DIALOG Pengerang Deepwater Terminal in illustration and progress in pictures

LNG

Source: DIALOG

"To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub“ - JPDC DIALOG Pengerang Deepwater Terminal in illustration and progress in pictures

SPV 1 (Completed December 2014)

Source: DIALOG

"To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub“ - JPDC DIALOG Pengerang Deepwater Terminal in illustration and progress in pictures

PDT Phase 2 (Construction in progress)

Source: DIALOG

"To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub“ - JPDC DIALOG Pengerang Deepwater Terminal in illustration and progress in pictures

PDT Phase 2 (Construction in progress)

Source: DIALOG

"To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub“ - JPDC Overview of PETRONAS Pengerang Integrated Complex (PIC)

PIC

Refinery and Petrochemical • Refinery (300k bbl/d refining capacity) Integrated Development • Naphtha cracker (RAPID) • Petrochemical plants

Supported by associated facilities Raw water supply project Air separation unit LNG regasification plant (PAMER) (ASU) (RGT2) Power generation plant Dedicated storage terminal Utilities and facilities (PCP) (SPV2) (UF)

"To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub“ - JPDC PETRONAS Refinery and Petrochemical Integrated Development (RAPID) Configuration

"To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub“ - JPDC PETRONAS Pengerang Integrated Complex (PIC) Project Progress

Construction of Refineries

Source: PETRONAS

"To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub“ - JPDC PETRONAS Pengerang Integrated Complex (PIC) Project Progress

Construction of Steam Cracker Complex

Source: PETRONAS

"To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub“ - JPDC PETRONAS Pengerang Integrated Complex (PIC) Project Progress

Construction of Regasification Terminal 2 (RGT-2)

Source: PETRONAS

"To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub“ - JPDC PETRONAS Pengerang Integrated Complex (PIC) Project Progress

Construction of Pengerang Co-generation Plant (PCP)

Source: PETRONAS

"To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub“ - JPDC Investment Opportunities by PETRONAS Chemicals Group

"To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub“ - JPDC .. and with other milestones achieved according to plan, the dream will soon become a reality..

PETRONAS Cogen Plant 1st PETRONAS Commercial Refinery Ready PETRONAS Operation For Start-Up FID – 3 April TODAY June 2017 Q1 2019  2014 2015 2016 2017 2018 2019

DIALOG DIALOG PETRONAS DIALOG Phase 1 Phase 2 GAS Phase 2 operation & RGT2 RGT2 operation operation commenced construction commences commences 12 April 2014 commenced Q4 2017 Q1 2019  Q1 2015 

To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 13 Industrial Park Development in PIPC

i. Pengerang Industrial Park (PIP) by JCorp

Johor Petroleum Development Corporation Berhad | 2016 Pengerang Industrial Park (PIP) by JCorp

The Overview

• The only large scale industrial park in Pengerang for SME’s. • Accessibility to RAPID, Highways, Roads and Haulage Road. • PIP is within PIPC project area and the project consist of :

o 1,231 acres of SME’s Industrial Park (phase1 : 786 acres ; phase 2 : 445 acres).

o 243 acres of Commercial & Residential development.

"To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub“ - JPDC Pengerang Industrial Park (PIP) by JCorp

Proposed Project Timeline

"To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub“ - JPDC PIPC Industrial Park Development by :

ii. Sg. Rengit Industrial Estate by DIALOG

Johor Petroleum Development Corporation Berhad | 2016 Sg. Rengit Industrial Estate by DIALOG

The Overview

Sg. Rengit Industrial Estate is within PIPC project area. The industrial park consist of : • 333 acres of potential industries that can be accommodated into the industrial park • Type of potential industries are : • petroleum & chemical storage facilities & warehouses • petrochemical manufacturing industries • bottling plants and drumming plants • open yard storages • other oil & gas related manufacturing industries/activities.

"To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub“ - JPDC Sg. Rengit Industrial Estate by DIALOG

The Development Component

Development Unit / Plot Size Component (Acre)

Commercial 1 1.12 Zone Detached 67 194.06 Industry Twin Industry 62 35.19 (929 m2) Cluster 36 8.80 Industry (2090 m2) Terrace 95 6.75 Industry (279 m2) Future N/A 14.87 Development

"To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub“ - JPDC Sg. Rengit Industrial Estate by DIALOG

Proposed Project Timeline

Environmental Impact Development Ready Built Assessment (EIA) Order Submitted to Factory For Submitted to Lease Department of Local Authority Environment (DOE) Vacant Possession

June Oct Land clearance and site preparation (1 ½ year) 2016 2016

May July April Oct 2016 2016 2018 2019

Development EIA Order Expected Approved To Be Approved

"To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub“ - JPDC Conclusion

Helping transform Malaysia into a high income nation

Diversifying the country’s economy

Increasing Malaysia’s export capacity

Opening up of Oil & Gas trading opportunities

Providing the nation’s growing energy needs

To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 7 PIPC has secured commitment from private investors and strong support from the Government of Malaysia..

 National Project of strategic importance

 PIPC is already operating! Independent storage started April 2014

 PIC project is progressing at 39% and is on track to achieve PIC start-up Q1 2019

 Public and private players are committed to realise the dream of an oil and gas hub in Pengerang

To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 14 Main Office Suite 17.03A, Level 17, Menara MSC Cyberport, No. 5, Jalan Bukit Meldrum, 80300 Johor Bahru, Johor, Malaysia. Tel : +607 – 267 2900 Fax : +607 – 267 2999 [email protected] www.jpdc.gov.my facebook.com/johorpetroleumdevelopmentcorporationberhad

Thank you

Johor Petroleum Development Corporation Berhad | 2016 43