State-run Saudi Arabian Oil Co is helping finance a US$27 billion (RM107 billion) refinery and a petrochemical complex in Johor. The project, known as Refinery and Petrochemicals Integrated Development, or Rapid, will add a new stream of fuels near Asia’s main oil trading hub of Singapore at a time when China continues to unleash record amounts of diesel and gasoline onto the global market.
“The immediate impact from Rapid will lead to more Malaysian exports of diesel and jet fuel, while also reducing the need to import as much gasoline,” said Joe Willis, a senior research analyst for refining and oil products at Wood Mackenzie Ltd in Singapore.
“For middle distillates, Johor is conveniently located next to the Singapore storage hub.”