KUALA LUMPUR: A rapid rollout of multiple contracts for the US$27 billion (RM89 billion) Pengerang Integrated Complex (PIC) project is expected after it received the go-ahead from Petroliam Nasional Bhd’s (Petronas) board of directors on Thursday.
The PIC comprises the US$16 billion Refinery and Petrochemical Integrated Development (Rapid) and other associated facilities with a combined investment value of US$11 billion.
AmResearch Sdn Bhd said Petronas has started seeking price quotations for equipment, components and civil packages from contractors and suppliers.
France-based Technip SA is the frontend engineering and design contractor for Rapid.
It expects Malaysia Marine and Heavy Engineering Holdings Bhd (MHB), in which Technip has an eight per cent stake, to be the prime beneficiary of the huge fabrication package rollout.
Other beneficiaries are SapuraKencana Petroleum Bhd and Dialog Group Bhd. With the green light, the latter will be able to kick off its Pengerang tank terminal project’s second phase.
“To a lesser extent, equipment suppliers such as KNM Group Bhd may also secure smaller packages,” AmResearch said.
Meanwhile, Hong Leong IB Research sees onshore fabricators and process equipment providers, such as KNM, Muhibbah Engineering Bhd, Eversendai Corp Bhd, MHB and Pantech Group Holdings Bhd, as having the potential to leverage on the Rapid project.
Others include downstream players like Dialog, Petronas Chemicals Group Bhd and Petronas Gas Bhd.
Maybank IB Research said Dialog will be a prime beneficiary while Petronas Chemicals could take part in the petrochemical operations and refineries.
HwangDBS Vickers Research named three key project beneficiaries, namely Muhibbah, Petronas Gas and Petronas Chemicals.
All the research firms maintained their “overweight” view on the oil and gas sector, citing potential opportunities with Petronas’ strategies.
Read more: Rapid rollout of contracts in pipeline – New Straits Times
