Post on 13-Jul-2016
description
PROCESS PLANT DESIGN
CDB 3044
ACETYLENE PRODUCTION BY PARTIAL OXIDATION BY HYDROCARBON
FEEDSTOCK
GROUP 2
GROUP MEMBERS MOHAMAD MUKHZIN BIN MOHD RASHID
UMMU ATHIYAH BT MUHD IDRIS LUFTI
MOHAMAD ALIF BIN ROSLAN
BRYAN TEE HWANG CHUNG
NORLIAFARHANA BINTI ABDUL KADIR
18867
19145
19428
19543
19944
LECTURER DR RAJASHEKHAR PENDYALA
SUMBISSION DATE 142016
1 | P a g e
Table of Contents
10 Introduction 3
20 Potential Plant Locations 5
30 Comparison for Each Locations 11
40 Weighted Evaluation 12
50 Conclusion 14
60 Plant Layout 15
70 References 16
2 | P a g e
10 INTRODUCTION
Acetylene (C2H2) is a colorless gas which is used as a fuel or coal and a chemical building block Acetylene is unsaturated in the form of alkyne as its two carbon atoms are bonded together in a triple bond having CCH bond angles of 180o It is unstable in pure form and thus is usually handled as a solution Pure acetylene is odorless but commercial grades usually have a marked odor due to impurities Acetylene is widely used in many chemical industries such as petrochemical industry It is also used in nonchemical applications such as welding of metals and the production of carbon for batteries There are advantages to the use of acetylene in the chemical industry because a variety of valuable products can be produced from acetylene with known technology In the recent years the crude oil deposits dwindle and the high oil price exerts pressure on the naphtha-derived olefins production Those issues renew the interest in the long-dormant subject of acetylene production based on natural gas The use of a natural gas-based acetylene industry is becoming more important to meet the large demand for chemical feedstock in the organic synthetic industry
For this process the production of acetylene is formed by partial oxidation from hydrocarbon feedstock particularly methane The partial oxidation process produces acetylene by burning hydrocarbons with oxygen to provide the energy for the pyrolysis of the residual hydrocarbons Acetylene is a reaction intermediate in the process and the reacting gas should be rapidly quenched at the point of optimum yield of acetylene The process is catalyst free thus the plant lifetime is long The co-production of synthesis gas has enhanced its economic advantage over the polluting calcium carbide route With a projected future where natural gas is a main chemical feedstock the process might become a main route to produce acetylene The energy requirement to convert hydrocarbons to acetylene is massively large and which can be supplied by very high temperature For paraffinic feedstock the heat of formation for a gram atom carbon in acetylene decreases with the increasing length of the chain and it increases in the case of olefinic hydrocarbons The heat of formation is of the order of magnitude required for the dissociation of steam
2CH4 + 174000 Btu C2H2 + 3H2
The formation of acetylene begins at a relatively high temperature in the case of methane occurs around 815oC The temperature required decreases with the increase in the number of carbon atoms of the hydrocarbon feed The reaction below shows the formation of acetylene from natural gas by partial oxidation
CH4 + 2O2 CO2 + 2H2O
2CH4 C2H2 + 3H2 ∆H = + 798 kcals
To meet the increasing demand of the acetylene market improvements in production efficiency and scaling-up of the partial oxidation reactor are needed Thus a strategic plant location and layout must be considered in order to meet the requirements of the desired product
3 | P a g e
Flowsheet of Manufacturing of Acetylene from Natural Gas (Methane)
20 POTENTIAL PLANT LOCATIONS
21 Bintulu Sarawak
Land price According to Bintulu Development Authority (BDA) the land prize in Bintulu is around RM 544 000 per hectare and subject to change from time to time by the State Government of Sarawak
Area available It is estimated around 2023 hectares of land in Bintulu is empty and under the State Government of Sarawak property
Water supplier In Bintulu the water is supply by the private company named LAKU Management Sdn Bhd and it is wholly owned by the State government of Sarawak The company entered into a 25 year concession agreement with the State Government for the production distribution of potable water and collection of water revenue in the 3 Northern urban townships of Miri Bintulu and Limbang in Sarawak
4 | P a g e
Electricity supplier Sarawak Energy Berhad (SEB) is responsible for the generation transmission and distribution of electricity for the Sarawak state in Malaysia It is wholly owned by the State Government of Sarawak Sarawak Energy provides electricity to about 382 000 customers Over the last four years sales of electrical grew at an average of 8 per cent per annum Sarawak Energy has over 4000 employees and is total asset currently stands around RM 40 billion
Methane supplier Shellrsquos Bintulu Gas-to Liquid (GTL) Plant is established by the Royal Dutch Shell as the worldrsquos first Shell Middle Distillate Synthesis plant (Shell MDS) in 1993 The plant has a production capacity of 14770 barrels per day with a total investment of over US$1 billion as of the year 2010 The plant is staffed with 380 people of whom 93 are Malaysians with 80 of the staff coming from Sarawak
Highway Pan-Borneo Highway is a road network on Borneo Island connecting two Malaysian states Sabah and Sarawak with Brunei The length of the entire highway is expected to be about 2083 km for the Malaysian section As of 2002 about 952 (99718 km) of the highway has been completed
Railway As of 2016 there is currently none railway is operated in Sarawak This might be due to the Sarawak land is very large in size and it is very hard to connect the town with railway However the state government has started to plan to build a railway station in Sarawak recently according to the news in Malaysiarsquos newspapers
Airport Bintulu Airport is an airport serving Bintulu a town in the state of Sarawak in Malaysia The airport is located 5 km 23 km by road southwest of the city and although small it is able to handle planes as large as a Boeing 747 In 2008 the airport handled 417918 passengers and 16787 aircraft movements
Port facility Bintulu Port Sdn Bhd (BPSB) is located at the doorstep of one of the most dynamic industrial development zone in Borneo handling oil amp gas related industries timber based and palm oil products Its location also facilitates the feedering and transloading operation between various regional ports for faster shipping transit time to major international ports and export destination BPSB current hinterland covers as far North as Limbang amp Lawas in Sarawak and up until the whole of Brunei DS plus Sabah In the other direction (South ndash East) BPSB coverage extend down to Kuching in Sarawak and further down to Pontianak in Kalimantan Indonesia
Labor supply
5 | P a g e
As Bintulu has emerged as a well renounce place with lots of oil and gas production sites it is indeed attracting more civilians to work there People around Malaysia and other parts of the world has come to Bintulu to work in various petroleum based industry there
Waste disposal The garbage dumpsite located in Tanjung Kidurong has collected around 20 tons of domestic and commercial waste per day for the last year This massive amount of waste produced is might be due to Bintulu is developing fast as more people working and staying there
Political economic and strategic consideration Bintulu has achieved a high speed economic growth due to the oil and gas industry Its gross domestic product (GDP) has increase by 7 from year 1995 to 2000
22 Pengerang Johor Bahru Johor
Land price Since PETRONAS RAPID Project has started in Pengerang the land price spike more than 800
within space of two years
Area available Some of the area available which is suitable for industrial need is only for rent Available that is nearest to PETRONAS Rapid Project is up to RM 914 per m2
Water Supplier Konsortium Asia Baru is a joint venture between renowned water supplier in Johor which are
Asia Baru Construction Sdn Bhd and Putra Perdana Construction Sdn Bhd
6 | P a g e
It comprises the construction of an intake pump station at Sungai Sedili Besar dam a terminal reservoir at Bukit Panjang a water impoundment reservoir and booster pump station at Sungai Seluyut as well as 88km of water pipelines
Electricity supplier Pengerang will have co-generation plan (PCP) which comprise of four generation unit to provide
continuous steam supply up to 1480 tons per hour Co-generation plant has higher efficiency than national electricity grid and onsite gas boiler This
allows for approximately 40 when compared to conventional power source Onsite production of power
Methane supplier Technip deal with PETRONAS Refinery and Petrochemical Integrated Development (RAPID)
between RM 244 - RM 487 million) allows production of hydrogen from methane Hence raw methane should be available as well
Highway Senai-Desaru Expressway shortens travelling time by half an hour Three major road works are undergoing construction because of Pengerang Rapid (Eastern
Dispersal Link Johor Bahru Costal Road and Johor Bahru Middle Ring Road)
Railway Stesen Kereta Api Johor Bahru for raw material transport Stations in Kuala Lumpur (Malaysia) and Jurong East (Singapore) expected to cut travel time
from 4-6 hours to 90 minutes
Airport Situated 116 km from Senai International Airport Only 147 km from Changi Airport
Port facility Pengerang Deepwater Terminal project is undergoing with estimated cost of RM 5 billion Sheltered harbor The construction of a deep water jetty facility with water depth of 24 meters would facilitate
handling Very Large Crude Carriers (VLCCs)
Labor supply About 50000 to 70000 specialized and general workers are expected for the Malaysiarsquos
Economic Transformation Program in Pengerang
7 | P a g e
Waste disposal 60 acres Waste Management Treatment near Sungai Rengit for solid waste conversion and
water treatment
Political economic and strategic consideration Under Malaysiarsquos Economic Transformation Program Access to existing major international shipping routes Proximity to major trading hub (Singapore) Few Environmentally Sensitive Area (ESA)
23 Spring Hill City Port Dickson Negeri Sembilan
Land price The industrial land area available for purchase targeted is around 5055 hectares and is priced around RM 32293m2
Area available The area is located on the southern west coast of Peninsular Malaysia in the State of Negeri Sembilan It is located in Springhill City which is in the Port Dickson district and is under a freehold term
Water supplier
8 | P a g e
Meanwhile supply of water is managed and distributed by the state water company Syarikat Air Negeri Sembilan Sdn Bhd (SAINS) The company is able to supply a large amount of water continuously
Electricity supplier In addition Tenaga Nasional Berhad (TNB) is responsible in supplying electricity throughout the Malaysia including the proposed area which is Port Dickson The nearest power plant managed by TNB in the area is the Jimah Power Plant which is allocated just 20 km from Port Dickson
Methane supplier Furthermore raw material needed which is Methane can be obtained from the PETRONAS Penapisan Melaka and LNG Terminal in Melaka The material is imported from the Gas Processing Plant (GPP) in Terengganu in which sales gas or Methane is distributed to customers through the PGU gas transmission network extending through the country As a result there are a lot of chemical and power plants that received their supply of raw materials along the network There are also other oil refineries plants in Port Dickson such as the Shell Refining Company (FOM) Berhad and Esso (Malaysia) Berhad
Highway Apart from that there is a large extension of highway along the west coast of peninsular Malaysia more known as the North-South Expressway (NSE) managed by PLUS Malaysia Berhad The highway also extends to Negeri Sembilan and one can take the exit and go through Lebuhraya Seremban-Port Dickson which connects Port Dickson to the capital city and the NSE highway
Railway Additionally there is an existing railway station nearby which is the Seremban Railway Station It is managed by Keretapi Tanah Melayu Berhad (KTMB) and the railway is also connected to the vast expense of railway network throughout the country and even extending outside the country and into neighbouring countries such as Thailand and Singapore
Airport Besides that Port Dickson is only 90 km or around 45 min from the nearest airport the Kuala Lumpur International Airport (KLIA) in Sepang The airport is capable of handling 35 million passengers and 12 million tons of cargo annually in its current state
Port Facility Moreover Port Dickson also has its own port which is located only around 10km from the proposed land The sea port is authorized by the Shell Refining Company and contains a majority of the minimum facilities required
9 | P a g e
Labor Supply Port Dickson also boost on a large population of labor workers available locally and internationally It is due to Malaysiarsquos Policy that allows industries to recruit foreign work labor to fulfill their companyrsquos needs
Waste Disposal Meanwhile the closest waste disposal service available is provided by Kualiti Alam Sdn Bhd and it is very convenient that its waste management center is located in Port Dickson This can help to reduce on cost as well It is the only waste disposal company in Malaysia to operate an integrated hazardous waste management center and holds license 76 out of 77 listed scheduled waste under the Environmental Quality (Scheduled Wastes) Regulations 2005
Political economic and strategic consideration Lastly in terms of political economic and strategic considerations the government listed it as one of the industrial areas in the country to be given additional incentives under the Investment Incentive Act 1968 Due to the countryrsquos policies foreign investors have a 100 hold over any new projects regardless of their export levels Other than that there are not that many incentives given by the state government regarding the industry apart from the ones implemented by the government
30 COMPARISON FOR EACH LOCATIONS
Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan
Land price RM 5440m2 RM 484m2 RM 32293m2
Area available 202343 hectares 18 hectares 5055 hectaresWater supplier LAKU Management Sdn
BhdKonsortium Asia Baru (KAP)
Syarikat Air Negeri Sembilan Sdn Bhd (SAINS)
Electricity supplier
Sarawak Energy Berhad (SEB)
Pengerang Co-Generation Plant (PCP)
Tenaga Nasional Berhad (TNB)
10 | P a g e
Methane supplier
Shellrsquos Bintulu GTL Plant Technip Reunidas Petronas Gas Berhad (PGB)
Highway - Pan-Borneo Highway- Bintulu-Miri Highway
- Senai-Desaru Expressway- Eastern Dispersal Link (EDL)- Johor Bahru Coastal Road
- Lebuhraya Seremban-Port Dickson- North-South Expressway (NSE) - PLUS Malaysia Berhad
Railway None Stesen Kereta Api Johor Bahru
Seremban Railway Station
Airport - Bintulu Airport - Senai International Airport- Changi International Airport
- Kuala Lumpur International Airport (KLIA)
Port facility Bintulu Port Sdn Bhd Pengerang Deepwater Terminal
Port Dickson
Labor supply Large population Large population Large PopulationWaste disposal Tanjung Kidurong Sungai Rengit Kualiti Alam Sdn BhdPolitical Economic and Strategic consideration
- Vast raw material availability- Speed economic growth due to oil and gas industry- GDP increase by 7 from 1995 to 2000- High technology incentive
- Access to existing major international shipping lanes (Middle East-Singapore-China)- Proximity to major trading hub (Singapore)- Deepwater of 24m (enables VLCCampULCC)- Few Environmentally Sensitive Area (ESA)- Close to Senai International Airport
- Foreign investors hold 100 ownership of all new projects regardless of export levels- Additional incentives under the Investment Incentive Act
40 WEIGHTED EVALUATION
The three proposed sites are evaluated in a table as per below The ranking was done from 1 (poor) 2 (fair) 3 (good) 4 (very good) to 5 (excellent)
Factors 5-4 Marks 3-2 Marks 1-0 MarksLand price Price of land below
than RM 100Price of land morethan RM 100
Price of land more than RM 500
Raw material supplier
Able to obtain largeraw material supply
Able to obtain largeraw material supply
Able to obtain largeraw material supply
11 | P a g e
locally from nearneighbouring countries
locally or from nearneighbouring countries
Water Supplier Able to obtain largewater supply from thesame state
Able to obtain largewater supply from theneighbouring state
Unable to obtainenough water supply
Electricity supplier Able to obtain largeelectricity supply fromthe same state
Able to obtain largeelectricity supply fromneighbouring state
Unable to obtainenough electricitysupply
Port facility lt 10 km proximity toport
lt 30 km proximity toport
gt 30 km proximity toport
Airport Availability ofinternational airport
Availability ofdomestic airport
Unavailability ofairport
Railway Complete network andwell maintainedrailway
Complete network ofrailway
Unavailability ofrailway
Political Economicand StrategicConsideration
Excellent tax benefitsMajor trading hubFew Environmentally Sensitive Area (ESA)
Good tax benefitsSmall trading hub
No tax benefitsNo trading hub
Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan
Land price 5 2 3Area available 4 3 3Water supplier 3 5 3Electricity supplier 4 5 4Methane supplier 5 5 5Highway facilities 4 5 5Railway facilities 0 5 4Airport 3 5 4
12 | P a g e
Port facilities 3 5 3Labor supply 5 5 5Waste disposal 5 5 5Incentives 3 5 4Total 44 55 48Percentage () 733 917 80Ranking 3 1 2
50 CONCLUSION
Based on the weighted evaluation done Pengerang Johor achieved the highest score and thus chosen
as the strategic location for the plant The deductions are rationalized as follows
The land available is limited and most expensive of all three sites however it is located in
Pengerang which is fully optimized for petrochemical production
The location is strategic because it is near major international route and deep water of up to 24
meters depth makes it possible for VLCC (Very Large Crude Carrier)
13 | P a g e
Very near to PETRONAS refinery and petrochemical integrated development project (RAPID)
hence material for methane is also available Apart from that continuous supply of steam is
available because the area uses of co-generation plant to power up It is much more efficient
than using electricity from national grid
Pengerang industry is from under Malaysia Economic Transformation Program which include
tax incentive and support from state and federal government
Pengerang has its own deep water port facility (Pengerang Deep Water Terminal) which is
designed specifically for loading and offloading of large carrier The port facility is a sheltered
harbor which is protected from storm and other risk of danger The port is able to store up to
5million cubic meters of material It has an area of 500 acres
About 50000 to 70000 specialised and general workers are expected for the Malaysiarsquos
Economic Transformation Program in Pengerang
Complete railway network for travelling between Kuala Lumpur and Singapore allows shorter
travelling time In return this ease monitoring from Kuala Lumpur
Few ESA Environmentally Sensitive Area in Pengerang makes it easier to dispose waste and
less restriction is imposed
60 PLANT LOCATION
14 | P a g e
70 REFERENCES
Ananta A amp Barichello R R (2012) Poverty and Global Recession in Southeast Asia Institute of
Southeast Asian Studies Retrieved from
httpsbooksgooglecommybooksid=
zx0BwAAQBAJamppg=PA126amplpg=PA126ampdq=industrial+incentives+in+negeri+sembilanampsourc
e=blampots=1EUc9HmVEHampsig=n_xwrtltNIvHoHlAIdkSXdj7xucamphl=enampsa=Xampredir_esc=yv=
nepageampq=industrial20incentives20in20negeri20sembilanampf=false
Benjamin N (2014 May 22) Johorrsquos Oil and Gas Sector Needs Up to 70000 Skilled Workers The
Star Retrieved from
15 | P a g e
httpwwwthestarcommynewscommunity20140522
opportunity-for-youths-johors-oil-and-gas-sector-needs-up-to-70000-skilled-workers
Jabatan Bekalan Air (nd) Senarai Syarikat Air Negeri Retrieved from
httpwwwjbagovmy
indexphpdirektori-jbasenarai-syarikat-air-negeri
Johor Petroleum Development Corporation (2015) Pengerang Integrated Petroleum Project (PIPC)
Retrieved from httpdutchchamsgwp-contentuploads201503Investor-deck-2015pdf
Kualiti Alam (nd) Waste Management Centre Retrieved from httpwwwkualitialam
commycontactus-waste-management-centrephp
Negeri Sembilan Investment Centre (nd) Industrial Current Status on Available Factories for
LeaseSale Retrieved from httpwwwnsiccommyfactoryhtml
Patel N K (nd) Acetylene Retrieved from httpnptelacincourses103106108Lecture207pdf
Pengerang Integrated Petroleum Complex (nd) Retrieved from httpwwwmprcgovmyour
businessespengerang-integrated-petroleum-complex-pipc
PENGERANG Petroleum and Maritime Industrial Park (2012) Strategic Location of Pengerang Johor
Malaysia Retrieved from httppengerangmaritimecommylocationhtml
Petronas RAPID Project Southern Johor Malaysia (nd) Retrieved from httpwwwhydrocarbons-
technologycomprojectspetronas-rapid-project-malaysia
Petronas Signs Contract for Pengerang Raw Water Suply Project (2014 May 2) The Malay
Mail Online Retrieved from
httpwwwthemalaymailonlinecommoneyarticlepetronas
signs contract-for pengerang-raw-water-supply-project
Petronas (2014 November 3) PETRONAS Kicks Off Its Pengerang Co-Generation Power Plant [Press
Release] Retrieved from
httpwwwpetronascommymedia-relationsmedia
releasesPagesarticlePETRONAS- KICKS-OFF-ITS-PENGERANG-CO-GENERATION-POWER
PLANTaspx
16 | P a g e
Port of Port Dickson (Malaysia) (nd) Retrieved from
httpswwwsearatescomportport_dickson_myhtm
Rapid Land Woes (2014 May 23) The Star Retrieved from
httpwwwthestarcommybusinessbusiness- news20140523rapid-land-woes
Tenaga Nasional Berhad (nd) Jimah Retrieved from httpswwwtnbcommytnbfjimahphp
Trotus I T Zimmerman T amp Schuth F (2013) Catalytic Reactions of Acetylene A Feedstock for
The Chemical Industry Revisited Chem Rev 114(3) pp 1761-1782 Retrieved from
httpswwwresearchgatenetpublication258524881_Catalytic_Reactions_of_Acetylene_
A_Feedstock_for_the_Chemical_Industry_Revisited
17 | P a g e
Table of Contents
10 Introduction 3
20 Potential Plant Locations 5
30 Comparison for Each Locations 11
40 Weighted Evaluation 12
50 Conclusion 14
60 Plant Layout 15
70 References 16
2 | P a g e
10 INTRODUCTION
Acetylene (C2H2) is a colorless gas which is used as a fuel or coal and a chemical building block Acetylene is unsaturated in the form of alkyne as its two carbon atoms are bonded together in a triple bond having CCH bond angles of 180o It is unstable in pure form and thus is usually handled as a solution Pure acetylene is odorless but commercial grades usually have a marked odor due to impurities Acetylene is widely used in many chemical industries such as petrochemical industry It is also used in nonchemical applications such as welding of metals and the production of carbon for batteries There are advantages to the use of acetylene in the chemical industry because a variety of valuable products can be produced from acetylene with known technology In the recent years the crude oil deposits dwindle and the high oil price exerts pressure on the naphtha-derived olefins production Those issues renew the interest in the long-dormant subject of acetylene production based on natural gas The use of a natural gas-based acetylene industry is becoming more important to meet the large demand for chemical feedstock in the organic synthetic industry
For this process the production of acetylene is formed by partial oxidation from hydrocarbon feedstock particularly methane The partial oxidation process produces acetylene by burning hydrocarbons with oxygen to provide the energy for the pyrolysis of the residual hydrocarbons Acetylene is a reaction intermediate in the process and the reacting gas should be rapidly quenched at the point of optimum yield of acetylene The process is catalyst free thus the plant lifetime is long The co-production of synthesis gas has enhanced its economic advantage over the polluting calcium carbide route With a projected future where natural gas is a main chemical feedstock the process might become a main route to produce acetylene The energy requirement to convert hydrocarbons to acetylene is massively large and which can be supplied by very high temperature For paraffinic feedstock the heat of formation for a gram atom carbon in acetylene decreases with the increasing length of the chain and it increases in the case of olefinic hydrocarbons The heat of formation is of the order of magnitude required for the dissociation of steam
2CH4 + 174000 Btu C2H2 + 3H2
The formation of acetylene begins at a relatively high temperature in the case of methane occurs around 815oC The temperature required decreases with the increase in the number of carbon atoms of the hydrocarbon feed The reaction below shows the formation of acetylene from natural gas by partial oxidation
CH4 + 2O2 CO2 + 2H2O
2CH4 C2H2 + 3H2 ∆H = + 798 kcals
To meet the increasing demand of the acetylene market improvements in production efficiency and scaling-up of the partial oxidation reactor are needed Thus a strategic plant location and layout must be considered in order to meet the requirements of the desired product
3 | P a g e
Flowsheet of Manufacturing of Acetylene from Natural Gas (Methane)
20 POTENTIAL PLANT LOCATIONS
21 Bintulu Sarawak
Land price According to Bintulu Development Authority (BDA) the land prize in Bintulu is around RM 544 000 per hectare and subject to change from time to time by the State Government of Sarawak
Area available It is estimated around 2023 hectares of land in Bintulu is empty and under the State Government of Sarawak property
Water supplier In Bintulu the water is supply by the private company named LAKU Management Sdn Bhd and it is wholly owned by the State government of Sarawak The company entered into a 25 year concession agreement with the State Government for the production distribution of potable water and collection of water revenue in the 3 Northern urban townships of Miri Bintulu and Limbang in Sarawak
4 | P a g e
Electricity supplier Sarawak Energy Berhad (SEB) is responsible for the generation transmission and distribution of electricity for the Sarawak state in Malaysia It is wholly owned by the State Government of Sarawak Sarawak Energy provides electricity to about 382 000 customers Over the last four years sales of electrical grew at an average of 8 per cent per annum Sarawak Energy has over 4000 employees and is total asset currently stands around RM 40 billion
Methane supplier Shellrsquos Bintulu Gas-to Liquid (GTL) Plant is established by the Royal Dutch Shell as the worldrsquos first Shell Middle Distillate Synthesis plant (Shell MDS) in 1993 The plant has a production capacity of 14770 barrels per day with a total investment of over US$1 billion as of the year 2010 The plant is staffed with 380 people of whom 93 are Malaysians with 80 of the staff coming from Sarawak
Highway Pan-Borneo Highway is a road network on Borneo Island connecting two Malaysian states Sabah and Sarawak with Brunei The length of the entire highway is expected to be about 2083 km for the Malaysian section As of 2002 about 952 (99718 km) of the highway has been completed
Railway As of 2016 there is currently none railway is operated in Sarawak This might be due to the Sarawak land is very large in size and it is very hard to connect the town with railway However the state government has started to plan to build a railway station in Sarawak recently according to the news in Malaysiarsquos newspapers
Airport Bintulu Airport is an airport serving Bintulu a town in the state of Sarawak in Malaysia The airport is located 5 km 23 km by road southwest of the city and although small it is able to handle planes as large as a Boeing 747 In 2008 the airport handled 417918 passengers and 16787 aircraft movements
Port facility Bintulu Port Sdn Bhd (BPSB) is located at the doorstep of one of the most dynamic industrial development zone in Borneo handling oil amp gas related industries timber based and palm oil products Its location also facilitates the feedering and transloading operation between various regional ports for faster shipping transit time to major international ports and export destination BPSB current hinterland covers as far North as Limbang amp Lawas in Sarawak and up until the whole of Brunei DS plus Sabah In the other direction (South ndash East) BPSB coverage extend down to Kuching in Sarawak and further down to Pontianak in Kalimantan Indonesia
Labor supply
5 | P a g e
As Bintulu has emerged as a well renounce place with lots of oil and gas production sites it is indeed attracting more civilians to work there People around Malaysia and other parts of the world has come to Bintulu to work in various petroleum based industry there
Waste disposal The garbage dumpsite located in Tanjung Kidurong has collected around 20 tons of domestic and commercial waste per day for the last year This massive amount of waste produced is might be due to Bintulu is developing fast as more people working and staying there
Political economic and strategic consideration Bintulu has achieved a high speed economic growth due to the oil and gas industry Its gross domestic product (GDP) has increase by 7 from year 1995 to 2000
22 Pengerang Johor Bahru Johor
Land price Since PETRONAS RAPID Project has started in Pengerang the land price spike more than 800
within space of two years
Area available Some of the area available which is suitable for industrial need is only for rent Available that is nearest to PETRONAS Rapid Project is up to RM 914 per m2
Water Supplier Konsortium Asia Baru is a joint venture between renowned water supplier in Johor which are
Asia Baru Construction Sdn Bhd and Putra Perdana Construction Sdn Bhd
6 | P a g e
It comprises the construction of an intake pump station at Sungai Sedili Besar dam a terminal reservoir at Bukit Panjang a water impoundment reservoir and booster pump station at Sungai Seluyut as well as 88km of water pipelines
Electricity supplier Pengerang will have co-generation plan (PCP) which comprise of four generation unit to provide
continuous steam supply up to 1480 tons per hour Co-generation plant has higher efficiency than national electricity grid and onsite gas boiler This
allows for approximately 40 when compared to conventional power source Onsite production of power
Methane supplier Technip deal with PETRONAS Refinery and Petrochemical Integrated Development (RAPID)
between RM 244 - RM 487 million) allows production of hydrogen from methane Hence raw methane should be available as well
Highway Senai-Desaru Expressway shortens travelling time by half an hour Three major road works are undergoing construction because of Pengerang Rapid (Eastern
Dispersal Link Johor Bahru Costal Road and Johor Bahru Middle Ring Road)
Railway Stesen Kereta Api Johor Bahru for raw material transport Stations in Kuala Lumpur (Malaysia) and Jurong East (Singapore) expected to cut travel time
from 4-6 hours to 90 minutes
Airport Situated 116 km from Senai International Airport Only 147 km from Changi Airport
Port facility Pengerang Deepwater Terminal project is undergoing with estimated cost of RM 5 billion Sheltered harbor The construction of a deep water jetty facility with water depth of 24 meters would facilitate
handling Very Large Crude Carriers (VLCCs)
Labor supply About 50000 to 70000 specialized and general workers are expected for the Malaysiarsquos
Economic Transformation Program in Pengerang
7 | P a g e
Waste disposal 60 acres Waste Management Treatment near Sungai Rengit for solid waste conversion and
water treatment
Political economic and strategic consideration Under Malaysiarsquos Economic Transformation Program Access to existing major international shipping routes Proximity to major trading hub (Singapore) Few Environmentally Sensitive Area (ESA)
23 Spring Hill City Port Dickson Negeri Sembilan
Land price The industrial land area available for purchase targeted is around 5055 hectares and is priced around RM 32293m2
Area available The area is located on the southern west coast of Peninsular Malaysia in the State of Negeri Sembilan It is located in Springhill City which is in the Port Dickson district and is under a freehold term
Water supplier
8 | P a g e
Meanwhile supply of water is managed and distributed by the state water company Syarikat Air Negeri Sembilan Sdn Bhd (SAINS) The company is able to supply a large amount of water continuously
Electricity supplier In addition Tenaga Nasional Berhad (TNB) is responsible in supplying electricity throughout the Malaysia including the proposed area which is Port Dickson The nearest power plant managed by TNB in the area is the Jimah Power Plant which is allocated just 20 km from Port Dickson
Methane supplier Furthermore raw material needed which is Methane can be obtained from the PETRONAS Penapisan Melaka and LNG Terminal in Melaka The material is imported from the Gas Processing Plant (GPP) in Terengganu in which sales gas or Methane is distributed to customers through the PGU gas transmission network extending through the country As a result there are a lot of chemical and power plants that received their supply of raw materials along the network There are also other oil refineries plants in Port Dickson such as the Shell Refining Company (FOM) Berhad and Esso (Malaysia) Berhad
Highway Apart from that there is a large extension of highway along the west coast of peninsular Malaysia more known as the North-South Expressway (NSE) managed by PLUS Malaysia Berhad The highway also extends to Negeri Sembilan and one can take the exit and go through Lebuhraya Seremban-Port Dickson which connects Port Dickson to the capital city and the NSE highway
Railway Additionally there is an existing railway station nearby which is the Seremban Railway Station It is managed by Keretapi Tanah Melayu Berhad (KTMB) and the railway is also connected to the vast expense of railway network throughout the country and even extending outside the country and into neighbouring countries such as Thailand and Singapore
Airport Besides that Port Dickson is only 90 km or around 45 min from the nearest airport the Kuala Lumpur International Airport (KLIA) in Sepang The airport is capable of handling 35 million passengers and 12 million tons of cargo annually in its current state
Port Facility Moreover Port Dickson also has its own port which is located only around 10km from the proposed land The sea port is authorized by the Shell Refining Company and contains a majority of the minimum facilities required
9 | P a g e
Labor Supply Port Dickson also boost on a large population of labor workers available locally and internationally It is due to Malaysiarsquos Policy that allows industries to recruit foreign work labor to fulfill their companyrsquos needs
Waste Disposal Meanwhile the closest waste disposal service available is provided by Kualiti Alam Sdn Bhd and it is very convenient that its waste management center is located in Port Dickson This can help to reduce on cost as well It is the only waste disposal company in Malaysia to operate an integrated hazardous waste management center and holds license 76 out of 77 listed scheduled waste under the Environmental Quality (Scheduled Wastes) Regulations 2005
Political economic and strategic consideration Lastly in terms of political economic and strategic considerations the government listed it as one of the industrial areas in the country to be given additional incentives under the Investment Incentive Act 1968 Due to the countryrsquos policies foreign investors have a 100 hold over any new projects regardless of their export levels Other than that there are not that many incentives given by the state government regarding the industry apart from the ones implemented by the government
30 COMPARISON FOR EACH LOCATIONS
Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan
Land price RM 5440m2 RM 484m2 RM 32293m2
Area available 202343 hectares 18 hectares 5055 hectaresWater supplier LAKU Management Sdn
BhdKonsortium Asia Baru (KAP)
Syarikat Air Negeri Sembilan Sdn Bhd (SAINS)
Electricity supplier
Sarawak Energy Berhad (SEB)
Pengerang Co-Generation Plant (PCP)
Tenaga Nasional Berhad (TNB)
10 | P a g e
Methane supplier
Shellrsquos Bintulu GTL Plant Technip Reunidas Petronas Gas Berhad (PGB)
Highway - Pan-Borneo Highway- Bintulu-Miri Highway
- Senai-Desaru Expressway- Eastern Dispersal Link (EDL)- Johor Bahru Coastal Road
- Lebuhraya Seremban-Port Dickson- North-South Expressway (NSE) - PLUS Malaysia Berhad
Railway None Stesen Kereta Api Johor Bahru
Seremban Railway Station
Airport - Bintulu Airport - Senai International Airport- Changi International Airport
- Kuala Lumpur International Airport (KLIA)
Port facility Bintulu Port Sdn Bhd Pengerang Deepwater Terminal
Port Dickson
Labor supply Large population Large population Large PopulationWaste disposal Tanjung Kidurong Sungai Rengit Kualiti Alam Sdn BhdPolitical Economic and Strategic consideration
- Vast raw material availability- Speed economic growth due to oil and gas industry- GDP increase by 7 from 1995 to 2000- High technology incentive
- Access to existing major international shipping lanes (Middle East-Singapore-China)- Proximity to major trading hub (Singapore)- Deepwater of 24m (enables VLCCampULCC)- Few Environmentally Sensitive Area (ESA)- Close to Senai International Airport
- Foreign investors hold 100 ownership of all new projects regardless of export levels- Additional incentives under the Investment Incentive Act
40 WEIGHTED EVALUATION
The three proposed sites are evaluated in a table as per below The ranking was done from 1 (poor) 2 (fair) 3 (good) 4 (very good) to 5 (excellent)
Factors 5-4 Marks 3-2 Marks 1-0 MarksLand price Price of land below
than RM 100Price of land morethan RM 100
Price of land more than RM 500
Raw material supplier
Able to obtain largeraw material supply
Able to obtain largeraw material supply
Able to obtain largeraw material supply
11 | P a g e
locally from nearneighbouring countries
locally or from nearneighbouring countries
Water Supplier Able to obtain largewater supply from thesame state
Able to obtain largewater supply from theneighbouring state
Unable to obtainenough water supply
Electricity supplier Able to obtain largeelectricity supply fromthe same state
Able to obtain largeelectricity supply fromneighbouring state
Unable to obtainenough electricitysupply
Port facility lt 10 km proximity toport
lt 30 km proximity toport
gt 30 km proximity toport
Airport Availability ofinternational airport
Availability ofdomestic airport
Unavailability ofairport
Railway Complete network andwell maintainedrailway
Complete network ofrailway
Unavailability ofrailway
Political Economicand StrategicConsideration
Excellent tax benefitsMajor trading hubFew Environmentally Sensitive Area (ESA)
Good tax benefitsSmall trading hub
No tax benefitsNo trading hub
Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan
Land price 5 2 3Area available 4 3 3Water supplier 3 5 3Electricity supplier 4 5 4Methane supplier 5 5 5Highway facilities 4 5 5Railway facilities 0 5 4Airport 3 5 4
12 | P a g e
Port facilities 3 5 3Labor supply 5 5 5Waste disposal 5 5 5Incentives 3 5 4Total 44 55 48Percentage () 733 917 80Ranking 3 1 2
50 CONCLUSION
Based on the weighted evaluation done Pengerang Johor achieved the highest score and thus chosen
as the strategic location for the plant The deductions are rationalized as follows
The land available is limited and most expensive of all three sites however it is located in
Pengerang which is fully optimized for petrochemical production
The location is strategic because it is near major international route and deep water of up to 24
meters depth makes it possible for VLCC (Very Large Crude Carrier)
13 | P a g e
Very near to PETRONAS refinery and petrochemical integrated development project (RAPID)
hence material for methane is also available Apart from that continuous supply of steam is
available because the area uses of co-generation plant to power up It is much more efficient
than using electricity from national grid
Pengerang industry is from under Malaysia Economic Transformation Program which include
tax incentive and support from state and federal government
Pengerang has its own deep water port facility (Pengerang Deep Water Terminal) which is
designed specifically for loading and offloading of large carrier The port facility is a sheltered
harbor which is protected from storm and other risk of danger The port is able to store up to
5million cubic meters of material It has an area of 500 acres
About 50000 to 70000 specialised and general workers are expected for the Malaysiarsquos
Economic Transformation Program in Pengerang
Complete railway network for travelling between Kuala Lumpur and Singapore allows shorter
travelling time In return this ease monitoring from Kuala Lumpur
Few ESA Environmentally Sensitive Area in Pengerang makes it easier to dispose waste and
less restriction is imposed
60 PLANT LOCATION
14 | P a g e
70 REFERENCES
Ananta A amp Barichello R R (2012) Poverty and Global Recession in Southeast Asia Institute of
Southeast Asian Studies Retrieved from
httpsbooksgooglecommybooksid=
zx0BwAAQBAJamppg=PA126amplpg=PA126ampdq=industrial+incentives+in+negeri+sembilanampsourc
e=blampots=1EUc9HmVEHampsig=n_xwrtltNIvHoHlAIdkSXdj7xucamphl=enampsa=Xampredir_esc=yv=
nepageampq=industrial20incentives20in20negeri20sembilanampf=false
Benjamin N (2014 May 22) Johorrsquos Oil and Gas Sector Needs Up to 70000 Skilled Workers The
Star Retrieved from
15 | P a g e
httpwwwthestarcommynewscommunity20140522
opportunity-for-youths-johors-oil-and-gas-sector-needs-up-to-70000-skilled-workers
Jabatan Bekalan Air (nd) Senarai Syarikat Air Negeri Retrieved from
httpwwwjbagovmy
indexphpdirektori-jbasenarai-syarikat-air-negeri
Johor Petroleum Development Corporation (2015) Pengerang Integrated Petroleum Project (PIPC)
Retrieved from httpdutchchamsgwp-contentuploads201503Investor-deck-2015pdf
Kualiti Alam (nd) Waste Management Centre Retrieved from httpwwwkualitialam
commycontactus-waste-management-centrephp
Negeri Sembilan Investment Centre (nd) Industrial Current Status on Available Factories for
LeaseSale Retrieved from httpwwwnsiccommyfactoryhtml
Patel N K (nd) Acetylene Retrieved from httpnptelacincourses103106108Lecture207pdf
Pengerang Integrated Petroleum Complex (nd) Retrieved from httpwwwmprcgovmyour
businessespengerang-integrated-petroleum-complex-pipc
PENGERANG Petroleum and Maritime Industrial Park (2012) Strategic Location of Pengerang Johor
Malaysia Retrieved from httppengerangmaritimecommylocationhtml
Petronas RAPID Project Southern Johor Malaysia (nd) Retrieved from httpwwwhydrocarbons-
technologycomprojectspetronas-rapid-project-malaysia
Petronas Signs Contract for Pengerang Raw Water Suply Project (2014 May 2) The Malay
Mail Online Retrieved from
httpwwwthemalaymailonlinecommoneyarticlepetronas
signs contract-for pengerang-raw-water-supply-project
Petronas (2014 November 3) PETRONAS Kicks Off Its Pengerang Co-Generation Power Plant [Press
Release] Retrieved from
httpwwwpetronascommymedia-relationsmedia
releasesPagesarticlePETRONAS- KICKS-OFF-ITS-PENGERANG-CO-GENERATION-POWER
PLANTaspx
16 | P a g e
Port of Port Dickson (Malaysia) (nd) Retrieved from
httpswwwsearatescomportport_dickson_myhtm
Rapid Land Woes (2014 May 23) The Star Retrieved from
httpwwwthestarcommybusinessbusiness- news20140523rapid-land-woes
Tenaga Nasional Berhad (nd) Jimah Retrieved from httpswwwtnbcommytnbfjimahphp
Trotus I T Zimmerman T amp Schuth F (2013) Catalytic Reactions of Acetylene A Feedstock for
The Chemical Industry Revisited Chem Rev 114(3) pp 1761-1782 Retrieved from
httpswwwresearchgatenetpublication258524881_Catalytic_Reactions_of_Acetylene_
A_Feedstock_for_the_Chemical_Industry_Revisited
17 | P a g e
10 INTRODUCTION
Acetylene (C2H2) is a colorless gas which is used as a fuel or coal and a chemical building block Acetylene is unsaturated in the form of alkyne as its two carbon atoms are bonded together in a triple bond having CCH bond angles of 180o It is unstable in pure form and thus is usually handled as a solution Pure acetylene is odorless but commercial grades usually have a marked odor due to impurities Acetylene is widely used in many chemical industries such as petrochemical industry It is also used in nonchemical applications such as welding of metals and the production of carbon for batteries There are advantages to the use of acetylene in the chemical industry because a variety of valuable products can be produced from acetylene with known technology In the recent years the crude oil deposits dwindle and the high oil price exerts pressure on the naphtha-derived olefins production Those issues renew the interest in the long-dormant subject of acetylene production based on natural gas The use of a natural gas-based acetylene industry is becoming more important to meet the large demand for chemical feedstock in the organic synthetic industry
For this process the production of acetylene is formed by partial oxidation from hydrocarbon feedstock particularly methane The partial oxidation process produces acetylene by burning hydrocarbons with oxygen to provide the energy for the pyrolysis of the residual hydrocarbons Acetylene is a reaction intermediate in the process and the reacting gas should be rapidly quenched at the point of optimum yield of acetylene The process is catalyst free thus the plant lifetime is long The co-production of synthesis gas has enhanced its economic advantage over the polluting calcium carbide route With a projected future where natural gas is a main chemical feedstock the process might become a main route to produce acetylene The energy requirement to convert hydrocarbons to acetylene is massively large and which can be supplied by very high temperature For paraffinic feedstock the heat of formation for a gram atom carbon in acetylene decreases with the increasing length of the chain and it increases in the case of olefinic hydrocarbons The heat of formation is of the order of magnitude required for the dissociation of steam
2CH4 + 174000 Btu C2H2 + 3H2
The formation of acetylene begins at a relatively high temperature in the case of methane occurs around 815oC The temperature required decreases with the increase in the number of carbon atoms of the hydrocarbon feed The reaction below shows the formation of acetylene from natural gas by partial oxidation
CH4 + 2O2 CO2 + 2H2O
2CH4 C2H2 + 3H2 ∆H = + 798 kcals
To meet the increasing demand of the acetylene market improvements in production efficiency and scaling-up of the partial oxidation reactor are needed Thus a strategic plant location and layout must be considered in order to meet the requirements of the desired product
3 | P a g e
Flowsheet of Manufacturing of Acetylene from Natural Gas (Methane)
20 POTENTIAL PLANT LOCATIONS
21 Bintulu Sarawak
Land price According to Bintulu Development Authority (BDA) the land prize in Bintulu is around RM 544 000 per hectare and subject to change from time to time by the State Government of Sarawak
Area available It is estimated around 2023 hectares of land in Bintulu is empty and under the State Government of Sarawak property
Water supplier In Bintulu the water is supply by the private company named LAKU Management Sdn Bhd and it is wholly owned by the State government of Sarawak The company entered into a 25 year concession agreement with the State Government for the production distribution of potable water and collection of water revenue in the 3 Northern urban townships of Miri Bintulu and Limbang in Sarawak
4 | P a g e
Electricity supplier Sarawak Energy Berhad (SEB) is responsible for the generation transmission and distribution of electricity for the Sarawak state in Malaysia It is wholly owned by the State Government of Sarawak Sarawak Energy provides electricity to about 382 000 customers Over the last four years sales of electrical grew at an average of 8 per cent per annum Sarawak Energy has over 4000 employees and is total asset currently stands around RM 40 billion
Methane supplier Shellrsquos Bintulu Gas-to Liquid (GTL) Plant is established by the Royal Dutch Shell as the worldrsquos first Shell Middle Distillate Synthesis plant (Shell MDS) in 1993 The plant has a production capacity of 14770 barrels per day with a total investment of over US$1 billion as of the year 2010 The plant is staffed with 380 people of whom 93 are Malaysians with 80 of the staff coming from Sarawak
Highway Pan-Borneo Highway is a road network on Borneo Island connecting two Malaysian states Sabah and Sarawak with Brunei The length of the entire highway is expected to be about 2083 km for the Malaysian section As of 2002 about 952 (99718 km) of the highway has been completed
Railway As of 2016 there is currently none railway is operated in Sarawak This might be due to the Sarawak land is very large in size and it is very hard to connect the town with railway However the state government has started to plan to build a railway station in Sarawak recently according to the news in Malaysiarsquos newspapers
Airport Bintulu Airport is an airport serving Bintulu a town in the state of Sarawak in Malaysia The airport is located 5 km 23 km by road southwest of the city and although small it is able to handle planes as large as a Boeing 747 In 2008 the airport handled 417918 passengers and 16787 aircraft movements
Port facility Bintulu Port Sdn Bhd (BPSB) is located at the doorstep of one of the most dynamic industrial development zone in Borneo handling oil amp gas related industries timber based and palm oil products Its location also facilitates the feedering and transloading operation between various regional ports for faster shipping transit time to major international ports and export destination BPSB current hinterland covers as far North as Limbang amp Lawas in Sarawak and up until the whole of Brunei DS plus Sabah In the other direction (South ndash East) BPSB coverage extend down to Kuching in Sarawak and further down to Pontianak in Kalimantan Indonesia
Labor supply
5 | P a g e
As Bintulu has emerged as a well renounce place with lots of oil and gas production sites it is indeed attracting more civilians to work there People around Malaysia and other parts of the world has come to Bintulu to work in various petroleum based industry there
Waste disposal The garbage dumpsite located in Tanjung Kidurong has collected around 20 tons of domestic and commercial waste per day for the last year This massive amount of waste produced is might be due to Bintulu is developing fast as more people working and staying there
Political economic and strategic consideration Bintulu has achieved a high speed economic growth due to the oil and gas industry Its gross domestic product (GDP) has increase by 7 from year 1995 to 2000
22 Pengerang Johor Bahru Johor
Land price Since PETRONAS RAPID Project has started in Pengerang the land price spike more than 800
within space of two years
Area available Some of the area available which is suitable for industrial need is only for rent Available that is nearest to PETRONAS Rapid Project is up to RM 914 per m2
Water Supplier Konsortium Asia Baru is a joint venture between renowned water supplier in Johor which are
Asia Baru Construction Sdn Bhd and Putra Perdana Construction Sdn Bhd
6 | P a g e
It comprises the construction of an intake pump station at Sungai Sedili Besar dam a terminal reservoir at Bukit Panjang a water impoundment reservoir and booster pump station at Sungai Seluyut as well as 88km of water pipelines
Electricity supplier Pengerang will have co-generation plan (PCP) which comprise of four generation unit to provide
continuous steam supply up to 1480 tons per hour Co-generation plant has higher efficiency than national electricity grid and onsite gas boiler This
allows for approximately 40 when compared to conventional power source Onsite production of power
Methane supplier Technip deal with PETRONAS Refinery and Petrochemical Integrated Development (RAPID)
between RM 244 - RM 487 million) allows production of hydrogen from methane Hence raw methane should be available as well
Highway Senai-Desaru Expressway shortens travelling time by half an hour Three major road works are undergoing construction because of Pengerang Rapid (Eastern
Dispersal Link Johor Bahru Costal Road and Johor Bahru Middle Ring Road)
Railway Stesen Kereta Api Johor Bahru for raw material transport Stations in Kuala Lumpur (Malaysia) and Jurong East (Singapore) expected to cut travel time
from 4-6 hours to 90 minutes
Airport Situated 116 km from Senai International Airport Only 147 km from Changi Airport
Port facility Pengerang Deepwater Terminal project is undergoing with estimated cost of RM 5 billion Sheltered harbor The construction of a deep water jetty facility with water depth of 24 meters would facilitate
handling Very Large Crude Carriers (VLCCs)
Labor supply About 50000 to 70000 specialized and general workers are expected for the Malaysiarsquos
Economic Transformation Program in Pengerang
7 | P a g e
Waste disposal 60 acres Waste Management Treatment near Sungai Rengit for solid waste conversion and
water treatment
Political economic and strategic consideration Under Malaysiarsquos Economic Transformation Program Access to existing major international shipping routes Proximity to major trading hub (Singapore) Few Environmentally Sensitive Area (ESA)
23 Spring Hill City Port Dickson Negeri Sembilan
Land price The industrial land area available for purchase targeted is around 5055 hectares and is priced around RM 32293m2
Area available The area is located on the southern west coast of Peninsular Malaysia in the State of Negeri Sembilan It is located in Springhill City which is in the Port Dickson district and is under a freehold term
Water supplier
8 | P a g e
Meanwhile supply of water is managed and distributed by the state water company Syarikat Air Negeri Sembilan Sdn Bhd (SAINS) The company is able to supply a large amount of water continuously
Electricity supplier In addition Tenaga Nasional Berhad (TNB) is responsible in supplying electricity throughout the Malaysia including the proposed area which is Port Dickson The nearest power plant managed by TNB in the area is the Jimah Power Plant which is allocated just 20 km from Port Dickson
Methane supplier Furthermore raw material needed which is Methane can be obtained from the PETRONAS Penapisan Melaka and LNG Terminal in Melaka The material is imported from the Gas Processing Plant (GPP) in Terengganu in which sales gas or Methane is distributed to customers through the PGU gas transmission network extending through the country As a result there are a lot of chemical and power plants that received their supply of raw materials along the network There are also other oil refineries plants in Port Dickson such as the Shell Refining Company (FOM) Berhad and Esso (Malaysia) Berhad
Highway Apart from that there is a large extension of highway along the west coast of peninsular Malaysia more known as the North-South Expressway (NSE) managed by PLUS Malaysia Berhad The highway also extends to Negeri Sembilan and one can take the exit and go through Lebuhraya Seremban-Port Dickson which connects Port Dickson to the capital city and the NSE highway
Railway Additionally there is an existing railway station nearby which is the Seremban Railway Station It is managed by Keretapi Tanah Melayu Berhad (KTMB) and the railway is also connected to the vast expense of railway network throughout the country and even extending outside the country and into neighbouring countries such as Thailand and Singapore
Airport Besides that Port Dickson is only 90 km or around 45 min from the nearest airport the Kuala Lumpur International Airport (KLIA) in Sepang The airport is capable of handling 35 million passengers and 12 million tons of cargo annually in its current state
Port Facility Moreover Port Dickson also has its own port which is located only around 10km from the proposed land The sea port is authorized by the Shell Refining Company and contains a majority of the minimum facilities required
9 | P a g e
Labor Supply Port Dickson also boost on a large population of labor workers available locally and internationally It is due to Malaysiarsquos Policy that allows industries to recruit foreign work labor to fulfill their companyrsquos needs
Waste Disposal Meanwhile the closest waste disposal service available is provided by Kualiti Alam Sdn Bhd and it is very convenient that its waste management center is located in Port Dickson This can help to reduce on cost as well It is the only waste disposal company in Malaysia to operate an integrated hazardous waste management center and holds license 76 out of 77 listed scheduled waste under the Environmental Quality (Scheduled Wastes) Regulations 2005
Political economic and strategic consideration Lastly in terms of political economic and strategic considerations the government listed it as one of the industrial areas in the country to be given additional incentives under the Investment Incentive Act 1968 Due to the countryrsquos policies foreign investors have a 100 hold over any new projects regardless of their export levels Other than that there are not that many incentives given by the state government regarding the industry apart from the ones implemented by the government
30 COMPARISON FOR EACH LOCATIONS
Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan
Land price RM 5440m2 RM 484m2 RM 32293m2
Area available 202343 hectares 18 hectares 5055 hectaresWater supplier LAKU Management Sdn
BhdKonsortium Asia Baru (KAP)
Syarikat Air Negeri Sembilan Sdn Bhd (SAINS)
Electricity supplier
Sarawak Energy Berhad (SEB)
Pengerang Co-Generation Plant (PCP)
Tenaga Nasional Berhad (TNB)
10 | P a g e
Methane supplier
Shellrsquos Bintulu GTL Plant Technip Reunidas Petronas Gas Berhad (PGB)
Highway - Pan-Borneo Highway- Bintulu-Miri Highway
- Senai-Desaru Expressway- Eastern Dispersal Link (EDL)- Johor Bahru Coastal Road
- Lebuhraya Seremban-Port Dickson- North-South Expressway (NSE) - PLUS Malaysia Berhad
Railway None Stesen Kereta Api Johor Bahru
Seremban Railway Station
Airport - Bintulu Airport - Senai International Airport- Changi International Airport
- Kuala Lumpur International Airport (KLIA)
Port facility Bintulu Port Sdn Bhd Pengerang Deepwater Terminal
Port Dickson
Labor supply Large population Large population Large PopulationWaste disposal Tanjung Kidurong Sungai Rengit Kualiti Alam Sdn BhdPolitical Economic and Strategic consideration
- Vast raw material availability- Speed economic growth due to oil and gas industry- GDP increase by 7 from 1995 to 2000- High technology incentive
- Access to existing major international shipping lanes (Middle East-Singapore-China)- Proximity to major trading hub (Singapore)- Deepwater of 24m (enables VLCCampULCC)- Few Environmentally Sensitive Area (ESA)- Close to Senai International Airport
- Foreign investors hold 100 ownership of all new projects regardless of export levels- Additional incentives under the Investment Incentive Act
40 WEIGHTED EVALUATION
The three proposed sites are evaluated in a table as per below The ranking was done from 1 (poor) 2 (fair) 3 (good) 4 (very good) to 5 (excellent)
Factors 5-4 Marks 3-2 Marks 1-0 MarksLand price Price of land below
than RM 100Price of land morethan RM 100
Price of land more than RM 500
Raw material supplier
Able to obtain largeraw material supply
Able to obtain largeraw material supply
Able to obtain largeraw material supply
11 | P a g e
locally from nearneighbouring countries
locally or from nearneighbouring countries
Water Supplier Able to obtain largewater supply from thesame state
Able to obtain largewater supply from theneighbouring state
Unable to obtainenough water supply
Electricity supplier Able to obtain largeelectricity supply fromthe same state
Able to obtain largeelectricity supply fromneighbouring state
Unable to obtainenough electricitysupply
Port facility lt 10 km proximity toport
lt 30 km proximity toport
gt 30 km proximity toport
Airport Availability ofinternational airport
Availability ofdomestic airport
Unavailability ofairport
Railway Complete network andwell maintainedrailway
Complete network ofrailway
Unavailability ofrailway
Political Economicand StrategicConsideration
Excellent tax benefitsMajor trading hubFew Environmentally Sensitive Area (ESA)
Good tax benefitsSmall trading hub
No tax benefitsNo trading hub
Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan
Land price 5 2 3Area available 4 3 3Water supplier 3 5 3Electricity supplier 4 5 4Methane supplier 5 5 5Highway facilities 4 5 5Railway facilities 0 5 4Airport 3 5 4
12 | P a g e
Port facilities 3 5 3Labor supply 5 5 5Waste disposal 5 5 5Incentives 3 5 4Total 44 55 48Percentage () 733 917 80Ranking 3 1 2
50 CONCLUSION
Based on the weighted evaluation done Pengerang Johor achieved the highest score and thus chosen
as the strategic location for the plant The deductions are rationalized as follows
The land available is limited and most expensive of all three sites however it is located in
Pengerang which is fully optimized for petrochemical production
The location is strategic because it is near major international route and deep water of up to 24
meters depth makes it possible for VLCC (Very Large Crude Carrier)
13 | P a g e
Very near to PETRONAS refinery and petrochemical integrated development project (RAPID)
hence material for methane is also available Apart from that continuous supply of steam is
available because the area uses of co-generation plant to power up It is much more efficient
than using electricity from national grid
Pengerang industry is from under Malaysia Economic Transformation Program which include
tax incentive and support from state and federal government
Pengerang has its own deep water port facility (Pengerang Deep Water Terminal) which is
designed specifically for loading and offloading of large carrier The port facility is a sheltered
harbor which is protected from storm and other risk of danger The port is able to store up to
5million cubic meters of material It has an area of 500 acres
About 50000 to 70000 specialised and general workers are expected for the Malaysiarsquos
Economic Transformation Program in Pengerang
Complete railway network for travelling between Kuala Lumpur and Singapore allows shorter
travelling time In return this ease monitoring from Kuala Lumpur
Few ESA Environmentally Sensitive Area in Pengerang makes it easier to dispose waste and
less restriction is imposed
60 PLANT LOCATION
14 | P a g e
70 REFERENCES
Ananta A amp Barichello R R (2012) Poverty and Global Recession in Southeast Asia Institute of
Southeast Asian Studies Retrieved from
httpsbooksgooglecommybooksid=
zx0BwAAQBAJamppg=PA126amplpg=PA126ampdq=industrial+incentives+in+negeri+sembilanampsourc
e=blampots=1EUc9HmVEHampsig=n_xwrtltNIvHoHlAIdkSXdj7xucamphl=enampsa=Xampredir_esc=yv=
nepageampq=industrial20incentives20in20negeri20sembilanampf=false
Benjamin N (2014 May 22) Johorrsquos Oil and Gas Sector Needs Up to 70000 Skilled Workers The
Star Retrieved from
15 | P a g e
httpwwwthestarcommynewscommunity20140522
opportunity-for-youths-johors-oil-and-gas-sector-needs-up-to-70000-skilled-workers
Jabatan Bekalan Air (nd) Senarai Syarikat Air Negeri Retrieved from
httpwwwjbagovmy
indexphpdirektori-jbasenarai-syarikat-air-negeri
Johor Petroleum Development Corporation (2015) Pengerang Integrated Petroleum Project (PIPC)
Retrieved from httpdutchchamsgwp-contentuploads201503Investor-deck-2015pdf
Kualiti Alam (nd) Waste Management Centre Retrieved from httpwwwkualitialam
commycontactus-waste-management-centrephp
Negeri Sembilan Investment Centre (nd) Industrial Current Status on Available Factories for
LeaseSale Retrieved from httpwwwnsiccommyfactoryhtml
Patel N K (nd) Acetylene Retrieved from httpnptelacincourses103106108Lecture207pdf
Pengerang Integrated Petroleum Complex (nd) Retrieved from httpwwwmprcgovmyour
businessespengerang-integrated-petroleum-complex-pipc
PENGERANG Petroleum and Maritime Industrial Park (2012) Strategic Location of Pengerang Johor
Malaysia Retrieved from httppengerangmaritimecommylocationhtml
Petronas RAPID Project Southern Johor Malaysia (nd) Retrieved from httpwwwhydrocarbons-
technologycomprojectspetronas-rapid-project-malaysia
Petronas Signs Contract for Pengerang Raw Water Suply Project (2014 May 2) The Malay
Mail Online Retrieved from
httpwwwthemalaymailonlinecommoneyarticlepetronas
signs contract-for pengerang-raw-water-supply-project
Petronas (2014 November 3) PETRONAS Kicks Off Its Pengerang Co-Generation Power Plant [Press
Release] Retrieved from
httpwwwpetronascommymedia-relationsmedia
releasesPagesarticlePETRONAS- KICKS-OFF-ITS-PENGERANG-CO-GENERATION-POWER
PLANTaspx
16 | P a g e
Port of Port Dickson (Malaysia) (nd) Retrieved from
httpswwwsearatescomportport_dickson_myhtm
Rapid Land Woes (2014 May 23) The Star Retrieved from
httpwwwthestarcommybusinessbusiness- news20140523rapid-land-woes
Tenaga Nasional Berhad (nd) Jimah Retrieved from httpswwwtnbcommytnbfjimahphp
Trotus I T Zimmerman T amp Schuth F (2013) Catalytic Reactions of Acetylene A Feedstock for
The Chemical Industry Revisited Chem Rev 114(3) pp 1761-1782 Retrieved from
httpswwwresearchgatenetpublication258524881_Catalytic_Reactions_of_Acetylene_
A_Feedstock_for_the_Chemical_Industry_Revisited
17 | P a g e
Flowsheet of Manufacturing of Acetylene from Natural Gas (Methane)
20 POTENTIAL PLANT LOCATIONS
21 Bintulu Sarawak
Land price According to Bintulu Development Authority (BDA) the land prize in Bintulu is around RM 544 000 per hectare and subject to change from time to time by the State Government of Sarawak
Area available It is estimated around 2023 hectares of land in Bintulu is empty and under the State Government of Sarawak property
Water supplier In Bintulu the water is supply by the private company named LAKU Management Sdn Bhd and it is wholly owned by the State government of Sarawak The company entered into a 25 year concession agreement with the State Government for the production distribution of potable water and collection of water revenue in the 3 Northern urban townships of Miri Bintulu and Limbang in Sarawak
4 | P a g e
Electricity supplier Sarawak Energy Berhad (SEB) is responsible for the generation transmission and distribution of electricity for the Sarawak state in Malaysia It is wholly owned by the State Government of Sarawak Sarawak Energy provides electricity to about 382 000 customers Over the last four years sales of electrical grew at an average of 8 per cent per annum Sarawak Energy has over 4000 employees and is total asset currently stands around RM 40 billion
Methane supplier Shellrsquos Bintulu Gas-to Liquid (GTL) Plant is established by the Royal Dutch Shell as the worldrsquos first Shell Middle Distillate Synthesis plant (Shell MDS) in 1993 The plant has a production capacity of 14770 barrels per day with a total investment of over US$1 billion as of the year 2010 The plant is staffed with 380 people of whom 93 are Malaysians with 80 of the staff coming from Sarawak
Highway Pan-Borneo Highway is a road network on Borneo Island connecting two Malaysian states Sabah and Sarawak with Brunei The length of the entire highway is expected to be about 2083 km for the Malaysian section As of 2002 about 952 (99718 km) of the highway has been completed
Railway As of 2016 there is currently none railway is operated in Sarawak This might be due to the Sarawak land is very large in size and it is very hard to connect the town with railway However the state government has started to plan to build a railway station in Sarawak recently according to the news in Malaysiarsquos newspapers
Airport Bintulu Airport is an airport serving Bintulu a town in the state of Sarawak in Malaysia The airport is located 5 km 23 km by road southwest of the city and although small it is able to handle planes as large as a Boeing 747 In 2008 the airport handled 417918 passengers and 16787 aircraft movements
Port facility Bintulu Port Sdn Bhd (BPSB) is located at the doorstep of one of the most dynamic industrial development zone in Borneo handling oil amp gas related industries timber based and palm oil products Its location also facilitates the feedering and transloading operation between various regional ports for faster shipping transit time to major international ports and export destination BPSB current hinterland covers as far North as Limbang amp Lawas in Sarawak and up until the whole of Brunei DS plus Sabah In the other direction (South ndash East) BPSB coverage extend down to Kuching in Sarawak and further down to Pontianak in Kalimantan Indonesia
Labor supply
5 | P a g e
As Bintulu has emerged as a well renounce place with lots of oil and gas production sites it is indeed attracting more civilians to work there People around Malaysia and other parts of the world has come to Bintulu to work in various petroleum based industry there
Waste disposal The garbage dumpsite located in Tanjung Kidurong has collected around 20 tons of domestic and commercial waste per day for the last year This massive amount of waste produced is might be due to Bintulu is developing fast as more people working and staying there
Political economic and strategic consideration Bintulu has achieved a high speed economic growth due to the oil and gas industry Its gross domestic product (GDP) has increase by 7 from year 1995 to 2000
22 Pengerang Johor Bahru Johor
Land price Since PETRONAS RAPID Project has started in Pengerang the land price spike more than 800
within space of two years
Area available Some of the area available which is suitable for industrial need is only for rent Available that is nearest to PETRONAS Rapid Project is up to RM 914 per m2
Water Supplier Konsortium Asia Baru is a joint venture between renowned water supplier in Johor which are
Asia Baru Construction Sdn Bhd and Putra Perdana Construction Sdn Bhd
6 | P a g e
It comprises the construction of an intake pump station at Sungai Sedili Besar dam a terminal reservoir at Bukit Panjang a water impoundment reservoir and booster pump station at Sungai Seluyut as well as 88km of water pipelines
Electricity supplier Pengerang will have co-generation plan (PCP) which comprise of four generation unit to provide
continuous steam supply up to 1480 tons per hour Co-generation plant has higher efficiency than national electricity grid and onsite gas boiler This
allows for approximately 40 when compared to conventional power source Onsite production of power
Methane supplier Technip deal with PETRONAS Refinery and Petrochemical Integrated Development (RAPID)
between RM 244 - RM 487 million) allows production of hydrogen from methane Hence raw methane should be available as well
Highway Senai-Desaru Expressway shortens travelling time by half an hour Three major road works are undergoing construction because of Pengerang Rapid (Eastern
Dispersal Link Johor Bahru Costal Road and Johor Bahru Middle Ring Road)
Railway Stesen Kereta Api Johor Bahru for raw material transport Stations in Kuala Lumpur (Malaysia) and Jurong East (Singapore) expected to cut travel time
from 4-6 hours to 90 minutes
Airport Situated 116 km from Senai International Airport Only 147 km from Changi Airport
Port facility Pengerang Deepwater Terminal project is undergoing with estimated cost of RM 5 billion Sheltered harbor The construction of a deep water jetty facility with water depth of 24 meters would facilitate
handling Very Large Crude Carriers (VLCCs)
Labor supply About 50000 to 70000 specialized and general workers are expected for the Malaysiarsquos
Economic Transformation Program in Pengerang
7 | P a g e
Waste disposal 60 acres Waste Management Treatment near Sungai Rengit for solid waste conversion and
water treatment
Political economic and strategic consideration Under Malaysiarsquos Economic Transformation Program Access to existing major international shipping routes Proximity to major trading hub (Singapore) Few Environmentally Sensitive Area (ESA)
23 Spring Hill City Port Dickson Negeri Sembilan
Land price The industrial land area available for purchase targeted is around 5055 hectares and is priced around RM 32293m2
Area available The area is located on the southern west coast of Peninsular Malaysia in the State of Negeri Sembilan It is located in Springhill City which is in the Port Dickson district and is under a freehold term
Water supplier
8 | P a g e
Meanwhile supply of water is managed and distributed by the state water company Syarikat Air Negeri Sembilan Sdn Bhd (SAINS) The company is able to supply a large amount of water continuously
Electricity supplier In addition Tenaga Nasional Berhad (TNB) is responsible in supplying electricity throughout the Malaysia including the proposed area which is Port Dickson The nearest power plant managed by TNB in the area is the Jimah Power Plant which is allocated just 20 km from Port Dickson
Methane supplier Furthermore raw material needed which is Methane can be obtained from the PETRONAS Penapisan Melaka and LNG Terminal in Melaka The material is imported from the Gas Processing Plant (GPP) in Terengganu in which sales gas or Methane is distributed to customers through the PGU gas transmission network extending through the country As a result there are a lot of chemical and power plants that received their supply of raw materials along the network There are also other oil refineries plants in Port Dickson such as the Shell Refining Company (FOM) Berhad and Esso (Malaysia) Berhad
Highway Apart from that there is a large extension of highway along the west coast of peninsular Malaysia more known as the North-South Expressway (NSE) managed by PLUS Malaysia Berhad The highway also extends to Negeri Sembilan and one can take the exit and go through Lebuhraya Seremban-Port Dickson which connects Port Dickson to the capital city and the NSE highway
Railway Additionally there is an existing railway station nearby which is the Seremban Railway Station It is managed by Keretapi Tanah Melayu Berhad (KTMB) and the railway is also connected to the vast expense of railway network throughout the country and even extending outside the country and into neighbouring countries such as Thailand and Singapore
Airport Besides that Port Dickson is only 90 km or around 45 min from the nearest airport the Kuala Lumpur International Airport (KLIA) in Sepang The airport is capable of handling 35 million passengers and 12 million tons of cargo annually in its current state
Port Facility Moreover Port Dickson also has its own port which is located only around 10km from the proposed land The sea port is authorized by the Shell Refining Company and contains a majority of the minimum facilities required
9 | P a g e
Labor Supply Port Dickson also boost on a large population of labor workers available locally and internationally It is due to Malaysiarsquos Policy that allows industries to recruit foreign work labor to fulfill their companyrsquos needs
Waste Disposal Meanwhile the closest waste disposal service available is provided by Kualiti Alam Sdn Bhd and it is very convenient that its waste management center is located in Port Dickson This can help to reduce on cost as well It is the only waste disposal company in Malaysia to operate an integrated hazardous waste management center and holds license 76 out of 77 listed scheduled waste under the Environmental Quality (Scheduled Wastes) Regulations 2005
Political economic and strategic consideration Lastly in terms of political economic and strategic considerations the government listed it as one of the industrial areas in the country to be given additional incentives under the Investment Incentive Act 1968 Due to the countryrsquos policies foreign investors have a 100 hold over any new projects regardless of their export levels Other than that there are not that many incentives given by the state government regarding the industry apart from the ones implemented by the government
30 COMPARISON FOR EACH LOCATIONS
Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan
Land price RM 5440m2 RM 484m2 RM 32293m2
Area available 202343 hectares 18 hectares 5055 hectaresWater supplier LAKU Management Sdn
BhdKonsortium Asia Baru (KAP)
Syarikat Air Negeri Sembilan Sdn Bhd (SAINS)
Electricity supplier
Sarawak Energy Berhad (SEB)
Pengerang Co-Generation Plant (PCP)
Tenaga Nasional Berhad (TNB)
10 | P a g e
Methane supplier
Shellrsquos Bintulu GTL Plant Technip Reunidas Petronas Gas Berhad (PGB)
Highway - Pan-Borneo Highway- Bintulu-Miri Highway
- Senai-Desaru Expressway- Eastern Dispersal Link (EDL)- Johor Bahru Coastal Road
- Lebuhraya Seremban-Port Dickson- North-South Expressway (NSE) - PLUS Malaysia Berhad
Railway None Stesen Kereta Api Johor Bahru
Seremban Railway Station
Airport - Bintulu Airport - Senai International Airport- Changi International Airport
- Kuala Lumpur International Airport (KLIA)
Port facility Bintulu Port Sdn Bhd Pengerang Deepwater Terminal
Port Dickson
Labor supply Large population Large population Large PopulationWaste disposal Tanjung Kidurong Sungai Rengit Kualiti Alam Sdn BhdPolitical Economic and Strategic consideration
- Vast raw material availability- Speed economic growth due to oil and gas industry- GDP increase by 7 from 1995 to 2000- High technology incentive
- Access to existing major international shipping lanes (Middle East-Singapore-China)- Proximity to major trading hub (Singapore)- Deepwater of 24m (enables VLCCampULCC)- Few Environmentally Sensitive Area (ESA)- Close to Senai International Airport
- Foreign investors hold 100 ownership of all new projects regardless of export levels- Additional incentives under the Investment Incentive Act
40 WEIGHTED EVALUATION
The three proposed sites are evaluated in a table as per below The ranking was done from 1 (poor) 2 (fair) 3 (good) 4 (very good) to 5 (excellent)
Factors 5-4 Marks 3-2 Marks 1-0 MarksLand price Price of land below
than RM 100Price of land morethan RM 100
Price of land more than RM 500
Raw material supplier
Able to obtain largeraw material supply
Able to obtain largeraw material supply
Able to obtain largeraw material supply
11 | P a g e
locally from nearneighbouring countries
locally or from nearneighbouring countries
Water Supplier Able to obtain largewater supply from thesame state
Able to obtain largewater supply from theneighbouring state
Unable to obtainenough water supply
Electricity supplier Able to obtain largeelectricity supply fromthe same state
Able to obtain largeelectricity supply fromneighbouring state
Unable to obtainenough electricitysupply
Port facility lt 10 km proximity toport
lt 30 km proximity toport
gt 30 km proximity toport
Airport Availability ofinternational airport
Availability ofdomestic airport
Unavailability ofairport
Railway Complete network andwell maintainedrailway
Complete network ofrailway
Unavailability ofrailway
Political Economicand StrategicConsideration
Excellent tax benefitsMajor trading hubFew Environmentally Sensitive Area (ESA)
Good tax benefitsSmall trading hub
No tax benefitsNo trading hub
Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan
Land price 5 2 3Area available 4 3 3Water supplier 3 5 3Electricity supplier 4 5 4Methane supplier 5 5 5Highway facilities 4 5 5Railway facilities 0 5 4Airport 3 5 4
12 | P a g e
Port facilities 3 5 3Labor supply 5 5 5Waste disposal 5 5 5Incentives 3 5 4Total 44 55 48Percentage () 733 917 80Ranking 3 1 2
50 CONCLUSION
Based on the weighted evaluation done Pengerang Johor achieved the highest score and thus chosen
as the strategic location for the plant The deductions are rationalized as follows
The land available is limited and most expensive of all three sites however it is located in
Pengerang which is fully optimized for petrochemical production
The location is strategic because it is near major international route and deep water of up to 24
meters depth makes it possible for VLCC (Very Large Crude Carrier)
13 | P a g e
Very near to PETRONAS refinery and petrochemical integrated development project (RAPID)
hence material for methane is also available Apart from that continuous supply of steam is
available because the area uses of co-generation plant to power up It is much more efficient
than using electricity from national grid
Pengerang industry is from under Malaysia Economic Transformation Program which include
tax incentive and support from state and federal government
Pengerang has its own deep water port facility (Pengerang Deep Water Terminal) which is
designed specifically for loading and offloading of large carrier The port facility is a sheltered
harbor which is protected from storm and other risk of danger The port is able to store up to
5million cubic meters of material It has an area of 500 acres
About 50000 to 70000 specialised and general workers are expected for the Malaysiarsquos
Economic Transformation Program in Pengerang
Complete railway network for travelling between Kuala Lumpur and Singapore allows shorter
travelling time In return this ease monitoring from Kuala Lumpur
Few ESA Environmentally Sensitive Area in Pengerang makes it easier to dispose waste and
less restriction is imposed
60 PLANT LOCATION
14 | P a g e
70 REFERENCES
Ananta A amp Barichello R R (2012) Poverty and Global Recession in Southeast Asia Institute of
Southeast Asian Studies Retrieved from
httpsbooksgooglecommybooksid=
zx0BwAAQBAJamppg=PA126amplpg=PA126ampdq=industrial+incentives+in+negeri+sembilanampsourc
e=blampots=1EUc9HmVEHampsig=n_xwrtltNIvHoHlAIdkSXdj7xucamphl=enampsa=Xampredir_esc=yv=
nepageampq=industrial20incentives20in20negeri20sembilanampf=false
Benjamin N (2014 May 22) Johorrsquos Oil and Gas Sector Needs Up to 70000 Skilled Workers The
Star Retrieved from
15 | P a g e
httpwwwthestarcommynewscommunity20140522
opportunity-for-youths-johors-oil-and-gas-sector-needs-up-to-70000-skilled-workers
Jabatan Bekalan Air (nd) Senarai Syarikat Air Negeri Retrieved from
httpwwwjbagovmy
indexphpdirektori-jbasenarai-syarikat-air-negeri
Johor Petroleum Development Corporation (2015) Pengerang Integrated Petroleum Project (PIPC)
Retrieved from httpdutchchamsgwp-contentuploads201503Investor-deck-2015pdf
Kualiti Alam (nd) Waste Management Centre Retrieved from httpwwwkualitialam
commycontactus-waste-management-centrephp
Negeri Sembilan Investment Centre (nd) Industrial Current Status on Available Factories for
LeaseSale Retrieved from httpwwwnsiccommyfactoryhtml
Patel N K (nd) Acetylene Retrieved from httpnptelacincourses103106108Lecture207pdf
Pengerang Integrated Petroleum Complex (nd) Retrieved from httpwwwmprcgovmyour
businessespengerang-integrated-petroleum-complex-pipc
PENGERANG Petroleum and Maritime Industrial Park (2012) Strategic Location of Pengerang Johor
Malaysia Retrieved from httppengerangmaritimecommylocationhtml
Petronas RAPID Project Southern Johor Malaysia (nd) Retrieved from httpwwwhydrocarbons-
technologycomprojectspetronas-rapid-project-malaysia
Petronas Signs Contract for Pengerang Raw Water Suply Project (2014 May 2) The Malay
Mail Online Retrieved from
httpwwwthemalaymailonlinecommoneyarticlepetronas
signs contract-for pengerang-raw-water-supply-project
Petronas (2014 November 3) PETRONAS Kicks Off Its Pengerang Co-Generation Power Plant [Press
Release] Retrieved from
httpwwwpetronascommymedia-relationsmedia
releasesPagesarticlePETRONAS- KICKS-OFF-ITS-PENGERANG-CO-GENERATION-POWER
PLANTaspx
16 | P a g e
Port of Port Dickson (Malaysia) (nd) Retrieved from
httpswwwsearatescomportport_dickson_myhtm
Rapid Land Woes (2014 May 23) The Star Retrieved from
httpwwwthestarcommybusinessbusiness- news20140523rapid-land-woes
Tenaga Nasional Berhad (nd) Jimah Retrieved from httpswwwtnbcommytnbfjimahphp
Trotus I T Zimmerman T amp Schuth F (2013) Catalytic Reactions of Acetylene A Feedstock for
The Chemical Industry Revisited Chem Rev 114(3) pp 1761-1782 Retrieved from
httpswwwresearchgatenetpublication258524881_Catalytic_Reactions_of_Acetylene_
A_Feedstock_for_the_Chemical_Industry_Revisited
17 | P a g e
Electricity supplier Sarawak Energy Berhad (SEB) is responsible for the generation transmission and distribution of electricity for the Sarawak state in Malaysia It is wholly owned by the State Government of Sarawak Sarawak Energy provides electricity to about 382 000 customers Over the last four years sales of electrical grew at an average of 8 per cent per annum Sarawak Energy has over 4000 employees and is total asset currently stands around RM 40 billion
Methane supplier Shellrsquos Bintulu Gas-to Liquid (GTL) Plant is established by the Royal Dutch Shell as the worldrsquos first Shell Middle Distillate Synthesis plant (Shell MDS) in 1993 The plant has a production capacity of 14770 barrels per day with a total investment of over US$1 billion as of the year 2010 The plant is staffed with 380 people of whom 93 are Malaysians with 80 of the staff coming from Sarawak
Highway Pan-Borneo Highway is a road network on Borneo Island connecting two Malaysian states Sabah and Sarawak with Brunei The length of the entire highway is expected to be about 2083 km for the Malaysian section As of 2002 about 952 (99718 km) of the highway has been completed
Railway As of 2016 there is currently none railway is operated in Sarawak This might be due to the Sarawak land is very large in size and it is very hard to connect the town with railway However the state government has started to plan to build a railway station in Sarawak recently according to the news in Malaysiarsquos newspapers
Airport Bintulu Airport is an airport serving Bintulu a town in the state of Sarawak in Malaysia The airport is located 5 km 23 km by road southwest of the city and although small it is able to handle planes as large as a Boeing 747 In 2008 the airport handled 417918 passengers and 16787 aircraft movements
Port facility Bintulu Port Sdn Bhd (BPSB) is located at the doorstep of one of the most dynamic industrial development zone in Borneo handling oil amp gas related industries timber based and palm oil products Its location also facilitates the feedering and transloading operation between various regional ports for faster shipping transit time to major international ports and export destination BPSB current hinterland covers as far North as Limbang amp Lawas in Sarawak and up until the whole of Brunei DS plus Sabah In the other direction (South ndash East) BPSB coverage extend down to Kuching in Sarawak and further down to Pontianak in Kalimantan Indonesia
Labor supply
5 | P a g e
As Bintulu has emerged as a well renounce place with lots of oil and gas production sites it is indeed attracting more civilians to work there People around Malaysia and other parts of the world has come to Bintulu to work in various petroleum based industry there
Waste disposal The garbage dumpsite located in Tanjung Kidurong has collected around 20 tons of domestic and commercial waste per day for the last year This massive amount of waste produced is might be due to Bintulu is developing fast as more people working and staying there
Political economic and strategic consideration Bintulu has achieved a high speed economic growth due to the oil and gas industry Its gross domestic product (GDP) has increase by 7 from year 1995 to 2000
22 Pengerang Johor Bahru Johor
Land price Since PETRONAS RAPID Project has started in Pengerang the land price spike more than 800
within space of two years
Area available Some of the area available which is suitable for industrial need is only for rent Available that is nearest to PETRONAS Rapid Project is up to RM 914 per m2
Water Supplier Konsortium Asia Baru is a joint venture between renowned water supplier in Johor which are
Asia Baru Construction Sdn Bhd and Putra Perdana Construction Sdn Bhd
6 | P a g e
It comprises the construction of an intake pump station at Sungai Sedili Besar dam a terminal reservoir at Bukit Panjang a water impoundment reservoir and booster pump station at Sungai Seluyut as well as 88km of water pipelines
Electricity supplier Pengerang will have co-generation plan (PCP) which comprise of four generation unit to provide
continuous steam supply up to 1480 tons per hour Co-generation plant has higher efficiency than national electricity grid and onsite gas boiler This
allows for approximately 40 when compared to conventional power source Onsite production of power
Methane supplier Technip deal with PETRONAS Refinery and Petrochemical Integrated Development (RAPID)
between RM 244 - RM 487 million) allows production of hydrogen from methane Hence raw methane should be available as well
Highway Senai-Desaru Expressway shortens travelling time by half an hour Three major road works are undergoing construction because of Pengerang Rapid (Eastern
Dispersal Link Johor Bahru Costal Road and Johor Bahru Middle Ring Road)
Railway Stesen Kereta Api Johor Bahru for raw material transport Stations in Kuala Lumpur (Malaysia) and Jurong East (Singapore) expected to cut travel time
from 4-6 hours to 90 minutes
Airport Situated 116 km from Senai International Airport Only 147 km from Changi Airport
Port facility Pengerang Deepwater Terminal project is undergoing with estimated cost of RM 5 billion Sheltered harbor The construction of a deep water jetty facility with water depth of 24 meters would facilitate
handling Very Large Crude Carriers (VLCCs)
Labor supply About 50000 to 70000 specialized and general workers are expected for the Malaysiarsquos
Economic Transformation Program in Pengerang
7 | P a g e
Waste disposal 60 acres Waste Management Treatment near Sungai Rengit for solid waste conversion and
water treatment
Political economic and strategic consideration Under Malaysiarsquos Economic Transformation Program Access to existing major international shipping routes Proximity to major trading hub (Singapore) Few Environmentally Sensitive Area (ESA)
23 Spring Hill City Port Dickson Negeri Sembilan
Land price The industrial land area available for purchase targeted is around 5055 hectares and is priced around RM 32293m2
Area available The area is located on the southern west coast of Peninsular Malaysia in the State of Negeri Sembilan It is located in Springhill City which is in the Port Dickson district and is under a freehold term
Water supplier
8 | P a g e
Meanwhile supply of water is managed and distributed by the state water company Syarikat Air Negeri Sembilan Sdn Bhd (SAINS) The company is able to supply a large amount of water continuously
Electricity supplier In addition Tenaga Nasional Berhad (TNB) is responsible in supplying electricity throughout the Malaysia including the proposed area which is Port Dickson The nearest power plant managed by TNB in the area is the Jimah Power Plant which is allocated just 20 km from Port Dickson
Methane supplier Furthermore raw material needed which is Methane can be obtained from the PETRONAS Penapisan Melaka and LNG Terminal in Melaka The material is imported from the Gas Processing Plant (GPP) in Terengganu in which sales gas or Methane is distributed to customers through the PGU gas transmission network extending through the country As a result there are a lot of chemical and power plants that received their supply of raw materials along the network There are also other oil refineries plants in Port Dickson such as the Shell Refining Company (FOM) Berhad and Esso (Malaysia) Berhad
Highway Apart from that there is a large extension of highway along the west coast of peninsular Malaysia more known as the North-South Expressway (NSE) managed by PLUS Malaysia Berhad The highway also extends to Negeri Sembilan and one can take the exit and go through Lebuhraya Seremban-Port Dickson which connects Port Dickson to the capital city and the NSE highway
Railway Additionally there is an existing railway station nearby which is the Seremban Railway Station It is managed by Keretapi Tanah Melayu Berhad (KTMB) and the railway is also connected to the vast expense of railway network throughout the country and even extending outside the country and into neighbouring countries such as Thailand and Singapore
Airport Besides that Port Dickson is only 90 km or around 45 min from the nearest airport the Kuala Lumpur International Airport (KLIA) in Sepang The airport is capable of handling 35 million passengers and 12 million tons of cargo annually in its current state
Port Facility Moreover Port Dickson also has its own port which is located only around 10km from the proposed land The sea port is authorized by the Shell Refining Company and contains a majority of the minimum facilities required
9 | P a g e
Labor Supply Port Dickson also boost on a large population of labor workers available locally and internationally It is due to Malaysiarsquos Policy that allows industries to recruit foreign work labor to fulfill their companyrsquos needs
Waste Disposal Meanwhile the closest waste disposal service available is provided by Kualiti Alam Sdn Bhd and it is very convenient that its waste management center is located in Port Dickson This can help to reduce on cost as well It is the only waste disposal company in Malaysia to operate an integrated hazardous waste management center and holds license 76 out of 77 listed scheduled waste under the Environmental Quality (Scheduled Wastes) Regulations 2005
Political economic and strategic consideration Lastly in terms of political economic and strategic considerations the government listed it as one of the industrial areas in the country to be given additional incentives under the Investment Incentive Act 1968 Due to the countryrsquos policies foreign investors have a 100 hold over any new projects regardless of their export levels Other than that there are not that many incentives given by the state government regarding the industry apart from the ones implemented by the government
30 COMPARISON FOR EACH LOCATIONS
Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan
Land price RM 5440m2 RM 484m2 RM 32293m2
Area available 202343 hectares 18 hectares 5055 hectaresWater supplier LAKU Management Sdn
BhdKonsortium Asia Baru (KAP)
Syarikat Air Negeri Sembilan Sdn Bhd (SAINS)
Electricity supplier
Sarawak Energy Berhad (SEB)
Pengerang Co-Generation Plant (PCP)
Tenaga Nasional Berhad (TNB)
10 | P a g e
Methane supplier
Shellrsquos Bintulu GTL Plant Technip Reunidas Petronas Gas Berhad (PGB)
Highway - Pan-Borneo Highway- Bintulu-Miri Highway
- Senai-Desaru Expressway- Eastern Dispersal Link (EDL)- Johor Bahru Coastal Road
- Lebuhraya Seremban-Port Dickson- North-South Expressway (NSE) - PLUS Malaysia Berhad
Railway None Stesen Kereta Api Johor Bahru
Seremban Railway Station
Airport - Bintulu Airport - Senai International Airport- Changi International Airport
- Kuala Lumpur International Airport (KLIA)
Port facility Bintulu Port Sdn Bhd Pengerang Deepwater Terminal
Port Dickson
Labor supply Large population Large population Large PopulationWaste disposal Tanjung Kidurong Sungai Rengit Kualiti Alam Sdn BhdPolitical Economic and Strategic consideration
- Vast raw material availability- Speed economic growth due to oil and gas industry- GDP increase by 7 from 1995 to 2000- High technology incentive
- Access to existing major international shipping lanes (Middle East-Singapore-China)- Proximity to major trading hub (Singapore)- Deepwater of 24m (enables VLCCampULCC)- Few Environmentally Sensitive Area (ESA)- Close to Senai International Airport
- Foreign investors hold 100 ownership of all new projects regardless of export levels- Additional incentives under the Investment Incentive Act
40 WEIGHTED EVALUATION
The three proposed sites are evaluated in a table as per below The ranking was done from 1 (poor) 2 (fair) 3 (good) 4 (very good) to 5 (excellent)
Factors 5-4 Marks 3-2 Marks 1-0 MarksLand price Price of land below
than RM 100Price of land morethan RM 100
Price of land more than RM 500
Raw material supplier
Able to obtain largeraw material supply
Able to obtain largeraw material supply
Able to obtain largeraw material supply
11 | P a g e
locally from nearneighbouring countries
locally or from nearneighbouring countries
Water Supplier Able to obtain largewater supply from thesame state
Able to obtain largewater supply from theneighbouring state
Unable to obtainenough water supply
Electricity supplier Able to obtain largeelectricity supply fromthe same state
Able to obtain largeelectricity supply fromneighbouring state
Unable to obtainenough electricitysupply
Port facility lt 10 km proximity toport
lt 30 km proximity toport
gt 30 km proximity toport
Airport Availability ofinternational airport
Availability ofdomestic airport
Unavailability ofairport
Railway Complete network andwell maintainedrailway
Complete network ofrailway
Unavailability ofrailway
Political Economicand StrategicConsideration
Excellent tax benefitsMajor trading hubFew Environmentally Sensitive Area (ESA)
Good tax benefitsSmall trading hub
No tax benefitsNo trading hub
Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan
Land price 5 2 3Area available 4 3 3Water supplier 3 5 3Electricity supplier 4 5 4Methane supplier 5 5 5Highway facilities 4 5 5Railway facilities 0 5 4Airport 3 5 4
12 | P a g e
Port facilities 3 5 3Labor supply 5 5 5Waste disposal 5 5 5Incentives 3 5 4Total 44 55 48Percentage () 733 917 80Ranking 3 1 2
50 CONCLUSION
Based on the weighted evaluation done Pengerang Johor achieved the highest score and thus chosen
as the strategic location for the plant The deductions are rationalized as follows
The land available is limited and most expensive of all three sites however it is located in
Pengerang which is fully optimized for petrochemical production
The location is strategic because it is near major international route and deep water of up to 24
meters depth makes it possible for VLCC (Very Large Crude Carrier)
13 | P a g e
Very near to PETRONAS refinery and petrochemical integrated development project (RAPID)
hence material for methane is also available Apart from that continuous supply of steam is
available because the area uses of co-generation plant to power up It is much more efficient
than using electricity from national grid
Pengerang industry is from under Malaysia Economic Transformation Program which include
tax incentive and support from state and federal government
Pengerang has its own deep water port facility (Pengerang Deep Water Terminal) which is
designed specifically for loading and offloading of large carrier The port facility is a sheltered
harbor which is protected from storm and other risk of danger The port is able to store up to
5million cubic meters of material It has an area of 500 acres
About 50000 to 70000 specialised and general workers are expected for the Malaysiarsquos
Economic Transformation Program in Pengerang
Complete railway network for travelling between Kuala Lumpur and Singapore allows shorter
travelling time In return this ease monitoring from Kuala Lumpur
Few ESA Environmentally Sensitive Area in Pengerang makes it easier to dispose waste and
less restriction is imposed
60 PLANT LOCATION
14 | P a g e
70 REFERENCES
Ananta A amp Barichello R R (2012) Poverty and Global Recession in Southeast Asia Institute of
Southeast Asian Studies Retrieved from
httpsbooksgooglecommybooksid=
zx0BwAAQBAJamppg=PA126amplpg=PA126ampdq=industrial+incentives+in+negeri+sembilanampsourc
e=blampots=1EUc9HmVEHampsig=n_xwrtltNIvHoHlAIdkSXdj7xucamphl=enampsa=Xampredir_esc=yv=
nepageampq=industrial20incentives20in20negeri20sembilanampf=false
Benjamin N (2014 May 22) Johorrsquos Oil and Gas Sector Needs Up to 70000 Skilled Workers The
Star Retrieved from
15 | P a g e
httpwwwthestarcommynewscommunity20140522
opportunity-for-youths-johors-oil-and-gas-sector-needs-up-to-70000-skilled-workers
Jabatan Bekalan Air (nd) Senarai Syarikat Air Negeri Retrieved from
httpwwwjbagovmy
indexphpdirektori-jbasenarai-syarikat-air-negeri
Johor Petroleum Development Corporation (2015) Pengerang Integrated Petroleum Project (PIPC)
Retrieved from httpdutchchamsgwp-contentuploads201503Investor-deck-2015pdf
Kualiti Alam (nd) Waste Management Centre Retrieved from httpwwwkualitialam
commycontactus-waste-management-centrephp
Negeri Sembilan Investment Centre (nd) Industrial Current Status on Available Factories for
LeaseSale Retrieved from httpwwwnsiccommyfactoryhtml
Patel N K (nd) Acetylene Retrieved from httpnptelacincourses103106108Lecture207pdf
Pengerang Integrated Petroleum Complex (nd) Retrieved from httpwwwmprcgovmyour
businessespengerang-integrated-petroleum-complex-pipc
PENGERANG Petroleum and Maritime Industrial Park (2012) Strategic Location of Pengerang Johor
Malaysia Retrieved from httppengerangmaritimecommylocationhtml
Petronas RAPID Project Southern Johor Malaysia (nd) Retrieved from httpwwwhydrocarbons-
technologycomprojectspetronas-rapid-project-malaysia
Petronas Signs Contract for Pengerang Raw Water Suply Project (2014 May 2) The Malay
Mail Online Retrieved from
httpwwwthemalaymailonlinecommoneyarticlepetronas
signs contract-for pengerang-raw-water-supply-project
Petronas (2014 November 3) PETRONAS Kicks Off Its Pengerang Co-Generation Power Plant [Press
Release] Retrieved from
httpwwwpetronascommymedia-relationsmedia
releasesPagesarticlePETRONAS- KICKS-OFF-ITS-PENGERANG-CO-GENERATION-POWER
PLANTaspx
16 | P a g e
Port of Port Dickson (Malaysia) (nd) Retrieved from
httpswwwsearatescomportport_dickson_myhtm
Rapid Land Woes (2014 May 23) The Star Retrieved from
httpwwwthestarcommybusinessbusiness- news20140523rapid-land-woes
Tenaga Nasional Berhad (nd) Jimah Retrieved from httpswwwtnbcommytnbfjimahphp
Trotus I T Zimmerman T amp Schuth F (2013) Catalytic Reactions of Acetylene A Feedstock for
The Chemical Industry Revisited Chem Rev 114(3) pp 1761-1782 Retrieved from
httpswwwresearchgatenetpublication258524881_Catalytic_Reactions_of_Acetylene_
A_Feedstock_for_the_Chemical_Industry_Revisited
17 | P a g e
As Bintulu has emerged as a well renounce place with lots of oil and gas production sites it is indeed attracting more civilians to work there People around Malaysia and other parts of the world has come to Bintulu to work in various petroleum based industry there
Waste disposal The garbage dumpsite located in Tanjung Kidurong has collected around 20 tons of domestic and commercial waste per day for the last year This massive amount of waste produced is might be due to Bintulu is developing fast as more people working and staying there
Political economic and strategic consideration Bintulu has achieved a high speed economic growth due to the oil and gas industry Its gross domestic product (GDP) has increase by 7 from year 1995 to 2000
22 Pengerang Johor Bahru Johor
Land price Since PETRONAS RAPID Project has started in Pengerang the land price spike more than 800
within space of two years
Area available Some of the area available which is suitable for industrial need is only for rent Available that is nearest to PETRONAS Rapid Project is up to RM 914 per m2
Water Supplier Konsortium Asia Baru is a joint venture between renowned water supplier in Johor which are
Asia Baru Construction Sdn Bhd and Putra Perdana Construction Sdn Bhd
6 | P a g e
It comprises the construction of an intake pump station at Sungai Sedili Besar dam a terminal reservoir at Bukit Panjang a water impoundment reservoir and booster pump station at Sungai Seluyut as well as 88km of water pipelines
Electricity supplier Pengerang will have co-generation plan (PCP) which comprise of four generation unit to provide
continuous steam supply up to 1480 tons per hour Co-generation plant has higher efficiency than national electricity grid and onsite gas boiler This
allows for approximately 40 when compared to conventional power source Onsite production of power
Methane supplier Technip deal with PETRONAS Refinery and Petrochemical Integrated Development (RAPID)
between RM 244 - RM 487 million) allows production of hydrogen from methane Hence raw methane should be available as well
Highway Senai-Desaru Expressway shortens travelling time by half an hour Three major road works are undergoing construction because of Pengerang Rapid (Eastern
Dispersal Link Johor Bahru Costal Road and Johor Bahru Middle Ring Road)
Railway Stesen Kereta Api Johor Bahru for raw material transport Stations in Kuala Lumpur (Malaysia) and Jurong East (Singapore) expected to cut travel time
from 4-6 hours to 90 minutes
Airport Situated 116 km from Senai International Airport Only 147 km from Changi Airport
Port facility Pengerang Deepwater Terminal project is undergoing with estimated cost of RM 5 billion Sheltered harbor The construction of a deep water jetty facility with water depth of 24 meters would facilitate
handling Very Large Crude Carriers (VLCCs)
Labor supply About 50000 to 70000 specialized and general workers are expected for the Malaysiarsquos
Economic Transformation Program in Pengerang
7 | P a g e
Waste disposal 60 acres Waste Management Treatment near Sungai Rengit for solid waste conversion and
water treatment
Political economic and strategic consideration Under Malaysiarsquos Economic Transformation Program Access to existing major international shipping routes Proximity to major trading hub (Singapore) Few Environmentally Sensitive Area (ESA)
23 Spring Hill City Port Dickson Negeri Sembilan
Land price The industrial land area available for purchase targeted is around 5055 hectares and is priced around RM 32293m2
Area available The area is located on the southern west coast of Peninsular Malaysia in the State of Negeri Sembilan It is located in Springhill City which is in the Port Dickson district and is under a freehold term
Water supplier
8 | P a g e
Meanwhile supply of water is managed and distributed by the state water company Syarikat Air Negeri Sembilan Sdn Bhd (SAINS) The company is able to supply a large amount of water continuously
Electricity supplier In addition Tenaga Nasional Berhad (TNB) is responsible in supplying electricity throughout the Malaysia including the proposed area which is Port Dickson The nearest power plant managed by TNB in the area is the Jimah Power Plant which is allocated just 20 km from Port Dickson
Methane supplier Furthermore raw material needed which is Methane can be obtained from the PETRONAS Penapisan Melaka and LNG Terminal in Melaka The material is imported from the Gas Processing Plant (GPP) in Terengganu in which sales gas or Methane is distributed to customers through the PGU gas transmission network extending through the country As a result there are a lot of chemical and power plants that received their supply of raw materials along the network There are also other oil refineries plants in Port Dickson such as the Shell Refining Company (FOM) Berhad and Esso (Malaysia) Berhad
Highway Apart from that there is a large extension of highway along the west coast of peninsular Malaysia more known as the North-South Expressway (NSE) managed by PLUS Malaysia Berhad The highway also extends to Negeri Sembilan and one can take the exit and go through Lebuhraya Seremban-Port Dickson which connects Port Dickson to the capital city and the NSE highway
Railway Additionally there is an existing railway station nearby which is the Seremban Railway Station It is managed by Keretapi Tanah Melayu Berhad (KTMB) and the railway is also connected to the vast expense of railway network throughout the country and even extending outside the country and into neighbouring countries such as Thailand and Singapore
Airport Besides that Port Dickson is only 90 km or around 45 min from the nearest airport the Kuala Lumpur International Airport (KLIA) in Sepang The airport is capable of handling 35 million passengers and 12 million tons of cargo annually in its current state
Port Facility Moreover Port Dickson also has its own port which is located only around 10km from the proposed land The sea port is authorized by the Shell Refining Company and contains a majority of the minimum facilities required
9 | P a g e
Labor Supply Port Dickson also boost on a large population of labor workers available locally and internationally It is due to Malaysiarsquos Policy that allows industries to recruit foreign work labor to fulfill their companyrsquos needs
Waste Disposal Meanwhile the closest waste disposal service available is provided by Kualiti Alam Sdn Bhd and it is very convenient that its waste management center is located in Port Dickson This can help to reduce on cost as well It is the only waste disposal company in Malaysia to operate an integrated hazardous waste management center and holds license 76 out of 77 listed scheduled waste under the Environmental Quality (Scheduled Wastes) Regulations 2005
Political economic and strategic consideration Lastly in terms of political economic and strategic considerations the government listed it as one of the industrial areas in the country to be given additional incentives under the Investment Incentive Act 1968 Due to the countryrsquos policies foreign investors have a 100 hold over any new projects regardless of their export levels Other than that there are not that many incentives given by the state government regarding the industry apart from the ones implemented by the government
30 COMPARISON FOR EACH LOCATIONS
Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan
Land price RM 5440m2 RM 484m2 RM 32293m2
Area available 202343 hectares 18 hectares 5055 hectaresWater supplier LAKU Management Sdn
BhdKonsortium Asia Baru (KAP)
Syarikat Air Negeri Sembilan Sdn Bhd (SAINS)
Electricity supplier
Sarawak Energy Berhad (SEB)
Pengerang Co-Generation Plant (PCP)
Tenaga Nasional Berhad (TNB)
10 | P a g e
Methane supplier
Shellrsquos Bintulu GTL Plant Technip Reunidas Petronas Gas Berhad (PGB)
Highway - Pan-Borneo Highway- Bintulu-Miri Highway
- Senai-Desaru Expressway- Eastern Dispersal Link (EDL)- Johor Bahru Coastal Road
- Lebuhraya Seremban-Port Dickson- North-South Expressway (NSE) - PLUS Malaysia Berhad
Railway None Stesen Kereta Api Johor Bahru
Seremban Railway Station
Airport - Bintulu Airport - Senai International Airport- Changi International Airport
- Kuala Lumpur International Airport (KLIA)
Port facility Bintulu Port Sdn Bhd Pengerang Deepwater Terminal
Port Dickson
Labor supply Large population Large population Large PopulationWaste disposal Tanjung Kidurong Sungai Rengit Kualiti Alam Sdn BhdPolitical Economic and Strategic consideration
- Vast raw material availability- Speed economic growth due to oil and gas industry- GDP increase by 7 from 1995 to 2000- High technology incentive
- Access to existing major international shipping lanes (Middle East-Singapore-China)- Proximity to major trading hub (Singapore)- Deepwater of 24m (enables VLCCampULCC)- Few Environmentally Sensitive Area (ESA)- Close to Senai International Airport
- Foreign investors hold 100 ownership of all new projects regardless of export levels- Additional incentives under the Investment Incentive Act
40 WEIGHTED EVALUATION
The three proposed sites are evaluated in a table as per below The ranking was done from 1 (poor) 2 (fair) 3 (good) 4 (very good) to 5 (excellent)
Factors 5-4 Marks 3-2 Marks 1-0 MarksLand price Price of land below
than RM 100Price of land morethan RM 100
Price of land more than RM 500
Raw material supplier
Able to obtain largeraw material supply
Able to obtain largeraw material supply
Able to obtain largeraw material supply
11 | P a g e
locally from nearneighbouring countries
locally or from nearneighbouring countries
Water Supplier Able to obtain largewater supply from thesame state
Able to obtain largewater supply from theneighbouring state
Unable to obtainenough water supply
Electricity supplier Able to obtain largeelectricity supply fromthe same state
Able to obtain largeelectricity supply fromneighbouring state
Unable to obtainenough electricitysupply
Port facility lt 10 km proximity toport
lt 30 km proximity toport
gt 30 km proximity toport
Airport Availability ofinternational airport
Availability ofdomestic airport
Unavailability ofairport
Railway Complete network andwell maintainedrailway
Complete network ofrailway
Unavailability ofrailway
Political Economicand StrategicConsideration
Excellent tax benefitsMajor trading hubFew Environmentally Sensitive Area (ESA)
Good tax benefitsSmall trading hub
No tax benefitsNo trading hub
Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan
Land price 5 2 3Area available 4 3 3Water supplier 3 5 3Electricity supplier 4 5 4Methane supplier 5 5 5Highway facilities 4 5 5Railway facilities 0 5 4Airport 3 5 4
12 | P a g e
Port facilities 3 5 3Labor supply 5 5 5Waste disposal 5 5 5Incentives 3 5 4Total 44 55 48Percentage () 733 917 80Ranking 3 1 2
50 CONCLUSION
Based on the weighted evaluation done Pengerang Johor achieved the highest score and thus chosen
as the strategic location for the plant The deductions are rationalized as follows
The land available is limited and most expensive of all three sites however it is located in
Pengerang which is fully optimized for petrochemical production
The location is strategic because it is near major international route and deep water of up to 24
meters depth makes it possible for VLCC (Very Large Crude Carrier)
13 | P a g e
Very near to PETRONAS refinery and petrochemical integrated development project (RAPID)
hence material for methane is also available Apart from that continuous supply of steam is
available because the area uses of co-generation plant to power up It is much more efficient
than using electricity from national grid
Pengerang industry is from under Malaysia Economic Transformation Program which include
tax incentive and support from state and federal government
Pengerang has its own deep water port facility (Pengerang Deep Water Terminal) which is
designed specifically for loading and offloading of large carrier The port facility is a sheltered
harbor which is protected from storm and other risk of danger The port is able to store up to
5million cubic meters of material It has an area of 500 acres
About 50000 to 70000 specialised and general workers are expected for the Malaysiarsquos
Economic Transformation Program in Pengerang
Complete railway network for travelling between Kuala Lumpur and Singapore allows shorter
travelling time In return this ease monitoring from Kuala Lumpur
Few ESA Environmentally Sensitive Area in Pengerang makes it easier to dispose waste and
less restriction is imposed
60 PLANT LOCATION
14 | P a g e
70 REFERENCES
Ananta A amp Barichello R R (2012) Poverty and Global Recession in Southeast Asia Institute of
Southeast Asian Studies Retrieved from
httpsbooksgooglecommybooksid=
zx0BwAAQBAJamppg=PA126amplpg=PA126ampdq=industrial+incentives+in+negeri+sembilanampsourc
e=blampots=1EUc9HmVEHampsig=n_xwrtltNIvHoHlAIdkSXdj7xucamphl=enampsa=Xampredir_esc=yv=
nepageampq=industrial20incentives20in20negeri20sembilanampf=false
Benjamin N (2014 May 22) Johorrsquos Oil and Gas Sector Needs Up to 70000 Skilled Workers The
Star Retrieved from
15 | P a g e
httpwwwthestarcommynewscommunity20140522
opportunity-for-youths-johors-oil-and-gas-sector-needs-up-to-70000-skilled-workers
Jabatan Bekalan Air (nd) Senarai Syarikat Air Negeri Retrieved from
httpwwwjbagovmy
indexphpdirektori-jbasenarai-syarikat-air-negeri
Johor Petroleum Development Corporation (2015) Pengerang Integrated Petroleum Project (PIPC)
Retrieved from httpdutchchamsgwp-contentuploads201503Investor-deck-2015pdf
Kualiti Alam (nd) Waste Management Centre Retrieved from httpwwwkualitialam
commycontactus-waste-management-centrephp
Negeri Sembilan Investment Centre (nd) Industrial Current Status on Available Factories for
LeaseSale Retrieved from httpwwwnsiccommyfactoryhtml
Patel N K (nd) Acetylene Retrieved from httpnptelacincourses103106108Lecture207pdf
Pengerang Integrated Petroleum Complex (nd) Retrieved from httpwwwmprcgovmyour
businessespengerang-integrated-petroleum-complex-pipc
PENGERANG Petroleum and Maritime Industrial Park (2012) Strategic Location of Pengerang Johor
Malaysia Retrieved from httppengerangmaritimecommylocationhtml
Petronas RAPID Project Southern Johor Malaysia (nd) Retrieved from httpwwwhydrocarbons-
technologycomprojectspetronas-rapid-project-malaysia
Petronas Signs Contract for Pengerang Raw Water Suply Project (2014 May 2) The Malay
Mail Online Retrieved from
httpwwwthemalaymailonlinecommoneyarticlepetronas
signs contract-for pengerang-raw-water-supply-project
Petronas (2014 November 3) PETRONAS Kicks Off Its Pengerang Co-Generation Power Plant [Press
Release] Retrieved from
httpwwwpetronascommymedia-relationsmedia
releasesPagesarticlePETRONAS- KICKS-OFF-ITS-PENGERANG-CO-GENERATION-POWER
PLANTaspx
16 | P a g e
Port of Port Dickson (Malaysia) (nd) Retrieved from
httpswwwsearatescomportport_dickson_myhtm
Rapid Land Woes (2014 May 23) The Star Retrieved from
httpwwwthestarcommybusinessbusiness- news20140523rapid-land-woes
Tenaga Nasional Berhad (nd) Jimah Retrieved from httpswwwtnbcommytnbfjimahphp
Trotus I T Zimmerman T amp Schuth F (2013) Catalytic Reactions of Acetylene A Feedstock for
The Chemical Industry Revisited Chem Rev 114(3) pp 1761-1782 Retrieved from
httpswwwresearchgatenetpublication258524881_Catalytic_Reactions_of_Acetylene_
A_Feedstock_for_the_Chemical_Industry_Revisited
17 | P a g e
It comprises the construction of an intake pump station at Sungai Sedili Besar dam a terminal reservoir at Bukit Panjang a water impoundment reservoir and booster pump station at Sungai Seluyut as well as 88km of water pipelines
Electricity supplier Pengerang will have co-generation plan (PCP) which comprise of four generation unit to provide
continuous steam supply up to 1480 tons per hour Co-generation plant has higher efficiency than national electricity grid and onsite gas boiler This
allows for approximately 40 when compared to conventional power source Onsite production of power
Methane supplier Technip deal with PETRONAS Refinery and Petrochemical Integrated Development (RAPID)
between RM 244 - RM 487 million) allows production of hydrogen from methane Hence raw methane should be available as well
Highway Senai-Desaru Expressway shortens travelling time by half an hour Three major road works are undergoing construction because of Pengerang Rapid (Eastern
Dispersal Link Johor Bahru Costal Road and Johor Bahru Middle Ring Road)
Railway Stesen Kereta Api Johor Bahru for raw material transport Stations in Kuala Lumpur (Malaysia) and Jurong East (Singapore) expected to cut travel time
from 4-6 hours to 90 minutes
Airport Situated 116 km from Senai International Airport Only 147 km from Changi Airport
Port facility Pengerang Deepwater Terminal project is undergoing with estimated cost of RM 5 billion Sheltered harbor The construction of a deep water jetty facility with water depth of 24 meters would facilitate
handling Very Large Crude Carriers (VLCCs)
Labor supply About 50000 to 70000 specialized and general workers are expected for the Malaysiarsquos
Economic Transformation Program in Pengerang
7 | P a g e
Waste disposal 60 acres Waste Management Treatment near Sungai Rengit for solid waste conversion and
water treatment
Political economic and strategic consideration Under Malaysiarsquos Economic Transformation Program Access to existing major international shipping routes Proximity to major trading hub (Singapore) Few Environmentally Sensitive Area (ESA)
23 Spring Hill City Port Dickson Negeri Sembilan
Land price The industrial land area available for purchase targeted is around 5055 hectares and is priced around RM 32293m2
Area available The area is located on the southern west coast of Peninsular Malaysia in the State of Negeri Sembilan It is located in Springhill City which is in the Port Dickson district and is under a freehold term
Water supplier
8 | P a g e
Meanwhile supply of water is managed and distributed by the state water company Syarikat Air Negeri Sembilan Sdn Bhd (SAINS) The company is able to supply a large amount of water continuously
Electricity supplier In addition Tenaga Nasional Berhad (TNB) is responsible in supplying electricity throughout the Malaysia including the proposed area which is Port Dickson The nearest power plant managed by TNB in the area is the Jimah Power Plant which is allocated just 20 km from Port Dickson
Methane supplier Furthermore raw material needed which is Methane can be obtained from the PETRONAS Penapisan Melaka and LNG Terminal in Melaka The material is imported from the Gas Processing Plant (GPP) in Terengganu in which sales gas or Methane is distributed to customers through the PGU gas transmission network extending through the country As a result there are a lot of chemical and power plants that received their supply of raw materials along the network There are also other oil refineries plants in Port Dickson such as the Shell Refining Company (FOM) Berhad and Esso (Malaysia) Berhad
Highway Apart from that there is a large extension of highway along the west coast of peninsular Malaysia more known as the North-South Expressway (NSE) managed by PLUS Malaysia Berhad The highway also extends to Negeri Sembilan and one can take the exit and go through Lebuhraya Seremban-Port Dickson which connects Port Dickson to the capital city and the NSE highway
Railway Additionally there is an existing railway station nearby which is the Seremban Railway Station It is managed by Keretapi Tanah Melayu Berhad (KTMB) and the railway is also connected to the vast expense of railway network throughout the country and even extending outside the country and into neighbouring countries such as Thailand and Singapore
Airport Besides that Port Dickson is only 90 km or around 45 min from the nearest airport the Kuala Lumpur International Airport (KLIA) in Sepang The airport is capable of handling 35 million passengers and 12 million tons of cargo annually in its current state
Port Facility Moreover Port Dickson also has its own port which is located only around 10km from the proposed land The sea port is authorized by the Shell Refining Company and contains a majority of the minimum facilities required
9 | P a g e
Labor Supply Port Dickson also boost on a large population of labor workers available locally and internationally It is due to Malaysiarsquos Policy that allows industries to recruit foreign work labor to fulfill their companyrsquos needs
Waste Disposal Meanwhile the closest waste disposal service available is provided by Kualiti Alam Sdn Bhd and it is very convenient that its waste management center is located in Port Dickson This can help to reduce on cost as well It is the only waste disposal company in Malaysia to operate an integrated hazardous waste management center and holds license 76 out of 77 listed scheduled waste under the Environmental Quality (Scheduled Wastes) Regulations 2005
Political economic and strategic consideration Lastly in terms of political economic and strategic considerations the government listed it as one of the industrial areas in the country to be given additional incentives under the Investment Incentive Act 1968 Due to the countryrsquos policies foreign investors have a 100 hold over any new projects regardless of their export levels Other than that there are not that many incentives given by the state government regarding the industry apart from the ones implemented by the government
30 COMPARISON FOR EACH LOCATIONS
Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan
Land price RM 5440m2 RM 484m2 RM 32293m2
Area available 202343 hectares 18 hectares 5055 hectaresWater supplier LAKU Management Sdn
BhdKonsortium Asia Baru (KAP)
Syarikat Air Negeri Sembilan Sdn Bhd (SAINS)
Electricity supplier
Sarawak Energy Berhad (SEB)
Pengerang Co-Generation Plant (PCP)
Tenaga Nasional Berhad (TNB)
10 | P a g e
Methane supplier
Shellrsquos Bintulu GTL Plant Technip Reunidas Petronas Gas Berhad (PGB)
Highway - Pan-Borneo Highway- Bintulu-Miri Highway
- Senai-Desaru Expressway- Eastern Dispersal Link (EDL)- Johor Bahru Coastal Road
- Lebuhraya Seremban-Port Dickson- North-South Expressway (NSE) - PLUS Malaysia Berhad
Railway None Stesen Kereta Api Johor Bahru
Seremban Railway Station
Airport - Bintulu Airport - Senai International Airport- Changi International Airport
- Kuala Lumpur International Airport (KLIA)
Port facility Bintulu Port Sdn Bhd Pengerang Deepwater Terminal
Port Dickson
Labor supply Large population Large population Large PopulationWaste disposal Tanjung Kidurong Sungai Rengit Kualiti Alam Sdn BhdPolitical Economic and Strategic consideration
- Vast raw material availability- Speed economic growth due to oil and gas industry- GDP increase by 7 from 1995 to 2000- High technology incentive
- Access to existing major international shipping lanes (Middle East-Singapore-China)- Proximity to major trading hub (Singapore)- Deepwater of 24m (enables VLCCampULCC)- Few Environmentally Sensitive Area (ESA)- Close to Senai International Airport
- Foreign investors hold 100 ownership of all new projects regardless of export levels- Additional incentives under the Investment Incentive Act
40 WEIGHTED EVALUATION
The three proposed sites are evaluated in a table as per below The ranking was done from 1 (poor) 2 (fair) 3 (good) 4 (very good) to 5 (excellent)
Factors 5-4 Marks 3-2 Marks 1-0 MarksLand price Price of land below
than RM 100Price of land morethan RM 100
Price of land more than RM 500
Raw material supplier
Able to obtain largeraw material supply
Able to obtain largeraw material supply
Able to obtain largeraw material supply
11 | P a g e
locally from nearneighbouring countries
locally or from nearneighbouring countries
Water Supplier Able to obtain largewater supply from thesame state
Able to obtain largewater supply from theneighbouring state
Unable to obtainenough water supply
Electricity supplier Able to obtain largeelectricity supply fromthe same state
Able to obtain largeelectricity supply fromneighbouring state
Unable to obtainenough electricitysupply
Port facility lt 10 km proximity toport
lt 30 km proximity toport
gt 30 km proximity toport
Airport Availability ofinternational airport
Availability ofdomestic airport
Unavailability ofairport
Railway Complete network andwell maintainedrailway
Complete network ofrailway
Unavailability ofrailway
Political Economicand StrategicConsideration
Excellent tax benefitsMajor trading hubFew Environmentally Sensitive Area (ESA)
Good tax benefitsSmall trading hub
No tax benefitsNo trading hub
Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan
Land price 5 2 3Area available 4 3 3Water supplier 3 5 3Electricity supplier 4 5 4Methane supplier 5 5 5Highway facilities 4 5 5Railway facilities 0 5 4Airport 3 5 4
12 | P a g e
Port facilities 3 5 3Labor supply 5 5 5Waste disposal 5 5 5Incentives 3 5 4Total 44 55 48Percentage () 733 917 80Ranking 3 1 2
50 CONCLUSION
Based on the weighted evaluation done Pengerang Johor achieved the highest score and thus chosen
as the strategic location for the plant The deductions are rationalized as follows
The land available is limited and most expensive of all three sites however it is located in
Pengerang which is fully optimized for petrochemical production
The location is strategic because it is near major international route and deep water of up to 24
meters depth makes it possible for VLCC (Very Large Crude Carrier)
13 | P a g e
Very near to PETRONAS refinery and petrochemical integrated development project (RAPID)
hence material for methane is also available Apart from that continuous supply of steam is
available because the area uses of co-generation plant to power up It is much more efficient
than using electricity from national grid
Pengerang industry is from under Malaysia Economic Transformation Program which include
tax incentive and support from state and federal government
Pengerang has its own deep water port facility (Pengerang Deep Water Terminal) which is
designed specifically for loading and offloading of large carrier The port facility is a sheltered
harbor which is protected from storm and other risk of danger The port is able to store up to
5million cubic meters of material It has an area of 500 acres
About 50000 to 70000 specialised and general workers are expected for the Malaysiarsquos
Economic Transformation Program in Pengerang
Complete railway network for travelling between Kuala Lumpur and Singapore allows shorter
travelling time In return this ease monitoring from Kuala Lumpur
Few ESA Environmentally Sensitive Area in Pengerang makes it easier to dispose waste and
less restriction is imposed
60 PLANT LOCATION
14 | P a g e
70 REFERENCES
Ananta A amp Barichello R R (2012) Poverty and Global Recession in Southeast Asia Institute of
Southeast Asian Studies Retrieved from
httpsbooksgooglecommybooksid=
zx0BwAAQBAJamppg=PA126amplpg=PA126ampdq=industrial+incentives+in+negeri+sembilanampsourc
e=blampots=1EUc9HmVEHampsig=n_xwrtltNIvHoHlAIdkSXdj7xucamphl=enampsa=Xampredir_esc=yv=
nepageampq=industrial20incentives20in20negeri20sembilanampf=false
Benjamin N (2014 May 22) Johorrsquos Oil and Gas Sector Needs Up to 70000 Skilled Workers The
Star Retrieved from
15 | P a g e
httpwwwthestarcommynewscommunity20140522
opportunity-for-youths-johors-oil-and-gas-sector-needs-up-to-70000-skilled-workers
Jabatan Bekalan Air (nd) Senarai Syarikat Air Negeri Retrieved from
httpwwwjbagovmy
indexphpdirektori-jbasenarai-syarikat-air-negeri
Johor Petroleum Development Corporation (2015) Pengerang Integrated Petroleum Project (PIPC)
Retrieved from httpdutchchamsgwp-contentuploads201503Investor-deck-2015pdf
Kualiti Alam (nd) Waste Management Centre Retrieved from httpwwwkualitialam
commycontactus-waste-management-centrephp
Negeri Sembilan Investment Centre (nd) Industrial Current Status on Available Factories for
LeaseSale Retrieved from httpwwwnsiccommyfactoryhtml
Patel N K (nd) Acetylene Retrieved from httpnptelacincourses103106108Lecture207pdf
Pengerang Integrated Petroleum Complex (nd) Retrieved from httpwwwmprcgovmyour
businessespengerang-integrated-petroleum-complex-pipc
PENGERANG Petroleum and Maritime Industrial Park (2012) Strategic Location of Pengerang Johor
Malaysia Retrieved from httppengerangmaritimecommylocationhtml
Petronas RAPID Project Southern Johor Malaysia (nd) Retrieved from httpwwwhydrocarbons-
technologycomprojectspetronas-rapid-project-malaysia
Petronas Signs Contract for Pengerang Raw Water Suply Project (2014 May 2) The Malay
Mail Online Retrieved from
httpwwwthemalaymailonlinecommoneyarticlepetronas
signs contract-for pengerang-raw-water-supply-project
Petronas (2014 November 3) PETRONAS Kicks Off Its Pengerang Co-Generation Power Plant [Press
Release] Retrieved from
httpwwwpetronascommymedia-relationsmedia
releasesPagesarticlePETRONAS- KICKS-OFF-ITS-PENGERANG-CO-GENERATION-POWER
PLANTaspx
16 | P a g e
Port of Port Dickson (Malaysia) (nd) Retrieved from
httpswwwsearatescomportport_dickson_myhtm
Rapid Land Woes (2014 May 23) The Star Retrieved from
httpwwwthestarcommybusinessbusiness- news20140523rapid-land-woes
Tenaga Nasional Berhad (nd) Jimah Retrieved from httpswwwtnbcommytnbfjimahphp
Trotus I T Zimmerman T amp Schuth F (2013) Catalytic Reactions of Acetylene A Feedstock for
The Chemical Industry Revisited Chem Rev 114(3) pp 1761-1782 Retrieved from
httpswwwresearchgatenetpublication258524881_Catalytic_Reactions_of_Acetylene_
A_Feedstock_for_the_Chemical_Industry_Revisited
17 | P a g e
Waste disposal 60 acres Waste Management Treatment near Sungai Rengit for solid waste conversion and
water treatment
Political economic and strategic consideration Under Malaysiarsquos Economic Transformation Program Access to existing major international shipping routes Proximity to major trading hub (Singapore) Few Environmentally Sensitive Area (ESA)
23 Spring Hill City Port Dickson Negeri Sembilan
Land price The industrial land area available for purchase targeted is around 5055 hectares and is priced around RM 32293m2
Area available The area is located on the southern west coast of Peninsular Malaysia in the State of Negeri Sembilan It is located in Springhill City which is in the Port Dickson district and is under a freehold term
Water supplier
8 | P a g e
Meanwhile supply of water is managed and distributed by the state water company Syarikat Air Negeri Sembilan Sdn Bhd (SAINS) The company is able to supply a large amount of water continuously
Electricity supplier In addition Tenaga Nasional Berhad (TNB) is responsible in supplying electricity throughout the Malaysia including the proposed area which is Port Dickson The nearest power plant managed by TNB in the area is the Jimah Power Plant which is allocated just 20 km from Port Dickson
Methane supplier Furthermore raw material needed which is Methane can be obtained from the PETRONAS Penapisan Melaka and LNG Terminal in Melaka The material is imported from the Gas Processing Plant (GPP) in Terengganu in which sales gas or Methane is distributed to customers through the PGU gas transmission network extending through the country As a result there are a lot of chemical and power plants that received their supply of raw materials along the network There are also other oil refineries plants in Port Dickson such as the Shell Refining Company (FOM) Berhad and Esso (Malaysia) Berhad
Highway Apart from that there is a large extension of highway along the west coast of peninsular Malaysia more known as the North-South Expressway (NSE) managed by PLUS Malaysia Berhad The highway also extends to Negeri Sembilan and one can take the exit and go through Lebuhraya Seremban-Port Dickson which connects Port Dickson to the capital city and the NSE highway
Railway Additionally there is an existing railway station nearby which is the Seremban Railway Station It is managed by Keretapi Tanah Melayu Berhad (KTMB) and the railway is also connected to the vast expense of railway network throughout the country and even extending outside the country and into neighbouring countries such as Thailand and Singapore
Airport Besides that Port Dickson is only 90 km or around 45 min from the nearest airport the Kuala Lumpur International Airport (KLIA) in Sepang The airport is capable of handling 35 million passengers and 12 million tons of cargo annually in its current state
Port Facility Moreover Port Dickson also has its own port which is located only around 10km from the proposed land The sea port is authorized by the Shell Refining Company and contains a majority of the minimum facilities required
9 | P a g e
Labor Supply Port Dickson also boost on a large population of labor workers available locally and internationally It is due to Malaysiarsquos Policy that allows industries to recruit foreign work labor to fulfill their companyrsquos needs
Waste Disposal Meanwhile the closest waste disposal service available is provided by Kualiti Alam Sdn Bhd and it is very convenient that its waste management center is located in Port Dickson This can help to reduce on cost as well It is the only waste disposal company in Malaysia to operate an integrated hazardous waste management center and holds license 76 out of 77 listed scheduled waste under the Environmental Quality (Scheduled Wastes) Regulations 2005
Political economic and strategic consideration Lastly in terms of political economic and strategic considerations the government listed it as one of the industrial areas in the country to be given additional incentives under the Investment Incentive Act 1968 Due to the countryrsquos policies foreign investors have a 100 hold over any new projects regardless of their export levels Other than that there are not that many incentives given by the state government regarding the industry apart from the ones implemented by the government
30 COMPARISON FOR EACH LOCATIONS
Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan
Land price RM 5440m2 RM 484m2 RM 32293m2
Area available 202343 hectares 18 hectares 5055 hectaresWater supplier LAKU Management Sdn
BhdKonsortium Asia Baru (KAP)
Syarikat Air Negeri Sembilan Sdn Bhd (SAINS)
Electricity supplier
Sarawak Energy Berhad (SEB)
Pengerang Co-Generation Plant (PCP)
Tenaga Nasional Berhad (TNB)
10 | P a g e
Methane supplier
Shellrsquos Bintulu GTL Plant Technip Reunidas Petronas Gas Berhad (PGB)
Highway - Pan-Borneo Highway- Bintulu-Miri Highway
- Senai-Desaru Expressway- Eastern Dispersal Link (EDL)- Johor Bahru Coastal Road
- Lebuhraya Seremban-Port Dickson- North-South Expressway (NSE) - PLUS Malaysia Berhad
Railway None Stesen Kereta Api Johor Bahru
Seremban Railway Station
Airport - Bintulu Airport - Senai International Airport- Changi International Airport
- Kuala Lumpur International Airport (KLIA)
Port facility Bintulu Port Sdn Bhd Pengerang Deepwater Terminal
Port Dickson
Labor supply Large population Large population Large PopulationWaste disposal Tanjung Kidurong Sungai Rengit Kualiti Alam Sdn BhdPolitical Economic and Strategic consideration
- Vast raw material availability- Speed economic growth due to oil and gas industry- GDP increase by 7 from 1995 to 2000- High technology incentive
- Access to existing major international shipping lanes (Middle East-Singapore-China)- Proximity to major trading hub (Singapore)- Deepwater of 24m (enables VLCCampULCC)- Few Environmentally Sensitive Area (ESA)- Close to Senai International Airport
- Foreign investors hold 100 ownership of all new projects regardless of export levels- Additional incentives under the Investment Incentive Act
40 WEIGHTED EVALUATION
The three proposed sites are evaluated in a table as per below The ranking was done from 1 (poor) 2 (fair) 3 (good) 4 (very good) to 5 (excellent)
Factors 5-4 Marks 3-2 Marks 1-0 MarksLand price Price of land below
than RM 100Price of land morethan RM 100
Price of land more than RM 500
Raw material supplier
Able to obtain largeraw material supply
Able to obtain largeraw material supply
Able to obtain largeraw material supply
11 | P a g e
locally from nearneighbouring countries
locally or from nearneighbouring countries
Water Supplier Able to obtain largewater supply from thesame state
Able to obtain largewater supply from theneighbouring state
Unable to obtainenough water supply
Electricity supplier Able to obtain largeelectricity supply fromthe same state
Able to obtain largeelectricity supply fromneighbouring state
Unable to obtainenough electricitysupply
Port facility lt 10 km proximity toport
lt 30 km proximity toport
gt 30 km proximity toport
Airport Availability ofinternational airport
Availability ofdomestic airport
Unavailability ofairport
Railway Complete network andwell maintainedrailway
Complete network ofrailway
Unavailability ofrailway
Political Economicand StrategicConsideration
Excellent tax benefitsMajor trading hubFew Environmentally Sensitive Area (ESA)
Good tax benefitsSmall trading hub
No tax benefitsNo trading hub
Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan
Land price 5 2 3Area available 4 3 3Water supplier 3 5 3Electricity supplier 4 5 4Methane supplier 5 5 5Highway facilities 4 5 5Railway facilities 0 5 4Airport 3 5 4
12 | P a g e
Port facilities 3 5 3Labor supply 5 5 5Waste disposal 5 5 5Incentives 3 5 4Total 44 55 48Percentage () 733 917 80Ranking 3 1 2
50 CONCLUSION
Based on the weighted evaluation done Pengerang Johor achieved the highest score and thus chosen
as the strategic location for the plant The deductions are rationalized as follows
The land available is limited and most expensive of all three sites however it is located in
Pengerang which is fully optimized for petrochemical production
The location is strategic because it is near major international route and deep water of up to 24
meters depth makes it possible for VLCC (Very Large Crude Carrier)
13 | P a g e
Very near to PETRONAS refinery and petrochemical integrated development project (RAPID)
hence material for methane is also available Apart from that continuous supply of steam is
available because the area uses of co-generation plant to power up It is much more efficient
than using electricity from national grid
Pengerang industry is from under Malaysia Economic Transformation Program which include
tax incentive and support from state and federal government
Pengerang has its own deep water port facility (Pengerang Deep Water Terminal) which is
designed specifically for loading and offloading of large carrier The port facility is a sheltered
harbor which is protected from storm and other risk of danger The port is able to store up to
5million cubic meters of material It has an area of 500 acres
About 50000 to 70000 specialised and general workers are expected for the Malaysiarsquos
Economic Transformation Program in Pengerang
Complete railway network for travelling between Kuala Lumpur and Singapore allows shorter
travelling time In return this ease monitoring from Kuala Lumpur
Few ESA Environmentally Sensitive Area in Pengerang makes it easier to dispose waste and
less restriction is imposed
60 PLANT LOCATION
14 | P a g e
70 REFERENCES
Ananta A amp Barichello R R (2012) Poverty and Global Recession in Southeast Asia Institute of
Southeast Asian Studies Retrieved from
httpsbooksgooglecommybooksid=
zx0BwAAQBAJamppg=PA126amplpg=PA126ampdq=industrial+incentives+in+negeri+sembilanampsourc
e=blampots=1EUc9HmVEHampsig=n_xwrtltNIvHoHlAIdkSXdj7xucamphl=enampsa=Xampredir_esc=yv=
nepageampq=industrial20incentives20in20negeri20sembilanampf=false
Benjamin N (2014 May 22) Johorrsquos Oil and Gas Sector Needs Up to 70000 Skilled Workers The
Star Retrieved from
15 | P a g e
httpwwwthestarcommynewscommunity20140522
opportunity-for-youths-johors-oil-and-gas-sector-needs-up-to-70000-skilled-workers
Jabatan Bekalan Air (nd) Senarai Syarikat Air Negeri Retrieved from
httpwwwjbagovmy
indexphpdirektori-jbasenarai-syarikat-air-negeri
Johor Petroleum Development Corporation (2015) Pengerang Integrated Petroleum Project (PIPC)
Retrieved from httpdutchchamsgwp-contentuploads201503Investor-deck-2015pdf
Kualiti Alam (nd) Waste Management Centre Retrieved from httpwwwkualitialam
commycontactus-waste-management-centrephp
Negeri Sembilan Investment Centre (nd) Industrial Current Status on Available Factories for
LeaseSale Retrieved from httpwwwnsiccommyfactoryhtml
Patel N K (nd) Acetylene Retrieved from httpnptelacincourses103106108Lecture207pdf
Pengerang Integrated Petroleum Complex (nd) Retrieved from httpwwwmprcgovmyour
businessespengerang-integrated-petroleum-complex-pipc
PENGERANG Petroleum and Maritime Industrial Park (2012) Strategic Location of Pengerang Johor
Malaysia Retrieved from httppengerangmaritimecommylocationhtml
Petronas RAPID Project Southern Johor Malaysia (nd) Retrieved from httpwwwhydrocarbons-
technologycomprojectspetronas-rapid-project-malaysia
Petronas Signs Contract for Pengerang Raw Water Suply Project (2014 May 2) The Malay
Mail Online Retrieved from
httpwwwthemalaymailonlinecommoneyarticlepetronas
signs contract-for pengerang-raw-water-supply-project
Petronas (2014 November 3) PETRONAS Kicks Off Its Pengerang Co-Generation Power Plant [Press
Release] Retrieved from
httpwwwpetronascommymedia-relationsmedia
releasesPagesarticlePETRONAS- KICKS-OFF-ITS-PENGERANG-CO-GENERATION-POWER
PLANTaspx
16 | P a g e
Port of Port Dickson (Malaysia) (nd) Retrieved from
httpswwwsearatescomportport_dickson_myhtm
Rapid Land Woes (2014 May 23) The Star Retrieved from
httpwwwthestarcommybusinessbusiness- news20140523rapid-land-woes
Tenaga Nasional Berhad (nd) Jimah Retrieved from httpswwwtnbcommytnbfjimahphp
Trotus I T Zimmerman T amp Schuth F (2013) Catalytic Reactions of Acetylene A Feedstock for
The Chemical Industry Revisited Chem Rev 114(3) pp 1761-1782 Retrieved from
httpswwwresearchgatenetpublication258524881_Catalytic_Reactions_of_Acetylene_
A_Feedstock_for_the_Chemical_Industry_Revisited
17 | P a g e
Meanwhile supply of water is managed and distributed by the state water company Syarikat Air Negeri Sembilan Sdn Bhd (SAINS) The company is able to supply a large amount of water continuously
Electricity supplier In addition Tenaga Nasional Berhad (TNB) is responsible in supplying electricity throughout the Malaysia including the proposed area which is Port Dickson The nearest power plant managed by TNB in the area is the Jimah Power Plant which is allocated just 20 km from Port Dickson
Methane supplier Furthermore raw material needed which is Methane can be obtained from the PETRONAS Penapisan Melaka and LNG Terminal in Melaka The material is imported from the Gas Processing Plant (GPP) in Terengganu in which sales gas or Methane is distributed to customers through the PGU gas transmission network extending through the country As a result there are a lot of chemical and power plants that received their supply of raw materials along the network There are also other oil refineries plants in Port Dickson such as the Shell Refining Company (FOM) Berhad and Esso (Malaysia) Berhad
Highway Apart from that there is a large extension of highway along the west coast of peninsular Malaysia more known as the North-South Expressway (NSE) managed by PLUS Malaysia Berhad The highway also extends to Negeri Sembilan and one can take the exit and go through Lebuhraya Seremban-Port Dickson which connects Port Dickson to the capital city and the NSE highway
Railway Additionally there is an existing railway station nearby which is the Seremban Railway Station It is managed by Keretapi Tanah Melayu Berhad (KTMB) and the railway is also connected to the vast expense of railway network throughout the country and even extending outside the country and into neighbouring countries such as Thailand and Singapore
Airport Besides that Port Dickson is only 90 km or around 45 min from the nearest airport the Kuala Lumpur International Airport (KLIA) in Sepang The airport is capable of handling 35 million passengers and 12 million tons of cargo annually in its current state
Port Facility Moreover Port Dickson also has its own port which is located only around 10km from the proposed land The sea port is authorized by the Shell Refining Company and contains a majority of the minimum facilities required
9 | P a g e
Labor Supply Port Dickson also boost on a large population of labor workers available locally and internationally It is due to Malaysiarsquos Policy that allows industries to recruit foreign work labor to fulfill their companyrsquos needs
Waste Disposal Meanwhile the closest waste disposal service available is provided by Kualiti Alam Sdn Bhd and it is very convenient that its waste management center is located in Port Dickson This can help to reduce on cost as well It is the only waste disposal company in Malaysia to operate an integrated hazardous waste management center and holds license 76 out of 77 listed scheduled waste under the Environmental Quality (Scheduled Wastes) Regulations 2005
Political economic and strategic consideration Lastly in terms of political economic and strategic considerations the government listed it as one of the industrial areas in the country to be given additional incentives under the Investment Incentive Act 1968 Due to the countryrsquos policies foreign investors have a 100 hold over any new projects regardless of their export levels Other than that there are not that many incentives given by the state government regarding the industry apart from the ones implemented by the government
30 COMPARISON FOR EACH LOCATIONS
Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan
Land price RM 5440m2 RM 484m2 RM 32293m2
Area available 202343 hectares 18 hectares 5055 hectaresWater supplier LAKU Management Sdn
BhdKonsortium Asia Baru (KAP)
Syarikat Air Negeri Sembilan Sdn Bhd (SAINS)
Electricity supplier
Sarawak Energy Berhad (SEB)
Pengerang Co-Generation Plant (PCP)
Tenaga Nasional Berhad (TNB)
10 | P a g e
Methane supplier
Shellrsquos Bintulu GTL Plant Technip Reunidas Petronas Gas Berhad (PGB)
Highway - Pan-Borneo Highway- Bintulu-Miri Highway
- Senai-Desaru Expressway- Eastern Dispersal Link (EDL)- Johor Bahru Coastal Road
- Lebuhraya Seremban-Port Dickson- North-South Expressway (NSE) - PLUS Malaysia Berhad
Railway None Stesen Kereta Api Johor Bahru
Seremban Railway Station
Airport - Bintulu Airport - Senai International Airport- Changi International Airport
- Kuala Lumpur International Airport (KLIA)
Port facility Bintulu Port Sdn Bhd Pengerang Deepwater Terminal
Port Dickson
Labor supply Large population Large population Large PopulationWaste disposal Tanjung Kidurong Sungai Rengit Kualiti Alam Sdn BhdPolitical Economic and Strategic consideration
- Vast raw material availability- Speed economic growth due to oil and gas industry- GDP increase by 7 from 1995 to 2000- High technology incentive
- Access to existing major international shipping lanes (Middle East-Singapore-China)- Proximity to major trading hub (Singapore)- Deepwater of 24m (enables VLCCampULCC)- Few Environmentally Sensitive Area (ESA)- Close to Senai International Airport
- Foreign investors hold 100 ownership of all new projects regardless of export levels- Additional incentives under the Investment Incentive Act
40 WEIGHTED EVALUATION
The three proposed sites are evaluated in a table as per below The ranking was done from 1 (poor) 2 (fair) 3 (good) 4 (very good) to 5 (excellent)
Factors 5-4 Marks 3-2 Marks 1-0 MarksLand price Price of land below
than RM 100Price of land morethan RM 100
Price of land more than RM 500
Raw material supplier
Able to obtain largeraw material supply
Able to obtain largeraw material supply
Able to obtain largeraw material supply
11 | P a g e
locally from nearneighbouring countries
locally or from nearneighbouring countries
Water Supplier Able to obtain largewater supply from thesame state
Able to obtain largewater supply from theneighbouring state
Unable to obtainenough water supply
Electricity supplier Able to obtain largeelectricity supply fromthe same state
Able to obtain largeelectricity supply fromneighbouring state
Unable to obtainenough electricitysupply
Port facility lt 10 km proximity toport
lt 30 km proximity toport
gt 30 km proximity toport
Airport Availability ofinternational airport
Availability ofdomestic airport
Unavailability ofairport
Railway Complete network andwell maintainedrailway
Complete network ofrailway
Unavailability ofrailway
Political Economicand StrategicConsideration
Excellent tax benefitsMajor trading hubFew Environmentally Sensitive Area (ESA)
Good tax benefitsSmall trading hub
No tax benefitsNo trading hub
Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan
Land price 5 2 3Area available 4 3 3Water supplier 3 5 3Electricity supplier 4 5 4Methane supplier 5 5 5Highway facilities 4 5 5Railway facilities 0 5 4Airport 3 5 4
12 | P a g e
Port facilities 3 5 3Labor supply 5 5 5Waste disposal 5 5 5Incentives 3 5 4Total 44 55 48Percentage () 733 917 80Ranking 3 1 2
50 CONCLUSION
Based on the weighted evaluation done Pengerang Johor achieved the highest score and thus chosen
as the strategic location for the plant The deductions are rationalized as follows
The land available is limited and most expensive of all three sites however it is located in
Pengerang which is fully optimized for petrochemical production
The location is strategic because it is near major international route and deep water of up to 24
meters depth makes it possible for VLCC (Very Large Crude Carrier)
13 | P a g e
Very near to PETRONAS refinery and petrochemical integrated development project (RAPID)
hence material for methane is also available Apart from that continuous supply of steam is
available because the area uses of co-generation plant to power up It is much more efficient
than using electricity from national grid
Pengerang industry is from under Malaysia Economic Transformation Program which include
tax incentive and support from state and federal government
Pengerang has its own deep water port facility (Pengerang Deep Water Terminal) which is
designed specifically for loading and offloading of large carrier The port facility is a sheltered
harbor which is protected from storm and other risk of danger The port is able to store up to
5million cubic meters of material It has an area of 500 acres
About 50000 to 70000 specialised and general workers are expected for the Malaysiarsquos
Economic Transformation Program in Pengerang
Complete railway network for travelling between Kuala Lumpur and Singapore allows shorter
travelling time In return this ease monitoring from Kuala Lumpur
Few ESA Environmentally Sensitive Area in Pengerang makes it easier to dispose waste and
less restriction is imposed
60 PLANT LOCATION
14 | P a g e
70 REFERENCES
Ananta A amp Barichello R R (2012) Poverty and Global Recession in Southeast Asia Institute of
Southeast Asian Studies Retrieved from
httpsbooksgooglecommybooksid=
zx0BwAAQBAJamppg=PA126amplpg=PA126ampdq=industrial+incentives+in+negeri+sembilanampsourc
e=blampots=1EUc9HmVEHampsig=n_xwrtltNIvHoHlAIdkSXdj7xucamphl=enampsa=Xampredir_esc=yv=
nepageampq=industrial20incentives20in20negeri20sembilanampf=false
Benjamin N (2014 May 22) Johorrsquos Oil and Gas Sector Needs Up to 70000 Skilled Workers The
Star Retrieved from
15 | P a g e
httpwwwthestarcommynewscommunity20140522
opportunity-for-youths-johors-oil-and-gas-sector-needs-up-to-70000-skilled-workers
Jabatan Bekalan Air (nd) Senarai Syarikat Air Negeri Retrieved from
httpwwwjbagovmy
indexphpdirektori-jbasenarai-syarikat-air-negeri
Johor Petroleum Development Corporation (2015) Pengerang Integrated Petroleum Project (PIPC)
Retrieved from httpdutchchamsgwp-contentuploads201503Investor-deck-2015pdf
Kualiti Alam (nd) Waste Management Centre Retrieved from httpwwwkualitialam
commycontactus-waste-management-centrephp
Negeri Sembilan Investment Centre (nd) Industrial Current Status on Available Factories for
LeaseSale Retrieved from httpwwwnsiccommyfactoryhtml
Patel N K (nd) Acetylene Retrieved from httpnptelacincourses103106108Lecture207pdf
Pengerang Integrated Petroleum Complex (nd) Retrieved from httpwwwmprcgovmyour
businessespengerang-integrated-petroleum-complex-pipc
PENGERANG Petroleum and Maritime Industrial Park (2012) Strategic Location of Pengerang Johor
Malaysia Retrieved from httppengerangmaritimecommylocationhtml
Petronas RAPID Project Southern Johor Malaysia (nd) Retrieved from httpwwwhydrocarbons-
technologycomprojectspetronas-rapid-project-malaysia
Petronas Signs Contract for Pengerang Raw Water Suply Project (2014 May 2) The Malay
Mail Online Retrieved from
httpwwwthemalaymailonlinecommoneyarticlepetronas
signs contract-for pengerang-raw-water-supply-project
Petronas (2014 November 3) PETRONAS Kicks Off Its Pengerang Co-Generation Power Plant [Press
Release] Retrieved from
httpwwwpetronascommymedia-relationsmedia
releasesPagesarticlePETRONAS- KICKS-OFF-ITS-PENGERANG-CO-GENERATION-POWER
PLANTaspx
16 | P a g e
Port of Port Dickson (Malaysia) (nd) Retrieved from
httpswwwsearatescomportport_dickson_myhtm
Rapid Land Woes (2014 May 23) The Star Retrieved from
httpwwwthestarcommybusinessbusiness- news20140523rapid-land-woes
Tenaga Nasional Berhad (nd) Jimah Retrieved from httpswwwtnbcommytnbfjimahphp
Trotus I T Zimmerman T amp Schuth F (2013) Catalytic Reactions of Acetylene A Feedstock for
The Chemical Industry Revisited Chem Rev 114(3) pp 1761-1782 Retrieved from
httpswwwresearchgatenetpublication258524881_Catalytic_Reactions_of_Acetylene_
A_Feedstock_for_the_Chemical_Industry_Revisited
17 | P a g e
Labor Supply Port Dickson also boost on a large population of labor workers available locally and internationally It is due to Malaysiarsquos Policy that allows industries to recruit foreign work labor to fulfill their companyrsquos needs
Waste Disposal Meanwhile the closest waste disposal service available is provided by Kualiti Alam Sdn Bhd and it is very convenient that its waste management center is located in Port Dickson This can help to reduce on cost as well It is the only waste disposal company in Malaysia to operate an integrated hazardous waste management center and holds license 76 out of 77 listed scheduled waste under the Environmental Quality (Scheduled Wastes) Regulations 2005
Political economic and strategic consideration Lastly in terms of political economic and strategic considerations the government listed it as one of the industrial areas in the country to be given additional incentives under the Investment Incentive Act 1968 Due to the countryrsquos policies foreign investors have a 100 hold over any new projects regardless of their export levels Other than that there are not that many incentives given by the state government regarding the industry apart from the ones implemented by the government
30 COMPARISON FOR EACH LOCATIONS
Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan
Land price RM 5440m2 RM 484m2 RM 32293m2
Area available 202343 hectares 18 hectares 5055 hectaresWater supplier LAKU Management Sdn
BhdKonsortium Asia Baru (KAP)
Syarikat Air Negeri Sembilan Sdn Bhd (SAINS)
Electricity supplier
Sarawak Energy Berhad (SEB)
Pengerang Co-Generation Plant (PCP)
Tenaga Nasional Berhad (TNB)
10 | P a g e
Methane supplier
Shellrsquos Bintulu GTL Plant Technip Reunidas Petronas Gas Berhad (PGB)
Highway - Pan-Borneo Highway- Bintulu-Miri Highway
- Senai-Desaru Expressway- Eastern Dispersal Link (EDL)- Johor Bahru Coastal Road
- Lebuhraya Seremban-Port Dickson- North-South Expressway (NSE) - PLUS Malaysia Berhad
Railway None Stesen Kereta Api Johor Bahru
Seremban Railway Station
Airport - Bintulu Airport - Senai International Airport- Changi International Airport
- Kuala Lumpur International Airport (KLIA)
Port facility Bintulu Port Sdn Bhd Pengerang Deepwater Terminal
Port Dickson
Labor supply Large population Large population Large PopulationWaste disposal Tanjung Kidurong Sungai Rengit Kualiti Alam Sdn BhdPolitical Economic and Strategic consideration
- Vast raw material availability- Speed economic growth due to oil and gas industry- GDP increase by 7 from 1995 to 2000- High technology incentive
- Access to existing major international shipping lanes (Middle East-Singapore-China)- Proximity to major trading hub (Singapore)- Deepwater of 24m (enables VLCCampULCC)- Few Environmentally Sensitive Area (ESA)- Close to Senai International Airport
- Foreign investors hold 100 ownership of all new projects regardless of export levels- Additional incentives under the Investment Incentive Act
40 WEIGHTED EVALUATION
The three proposed sites are evaluated in a table as per below The ranking was done from 1 (poor) 2 (fair) 3 (good) 4 (very good) to 5 (excellent)
Factors 5-4 Marks 3-2 Marks 1-0 MarksLand price Price of land below
than RM 100Price of land morethan RM 100
Price of land more than RM 500
Raw material supplier
Able to obtain largeraw material supply
Able to obtain largeraw material supply
Able to obtain largeraw material supply
11 | P a g e
locally from nearneighbouring countries
locally or from nearneighbouring countries
Water Supplier Able to obtain largewater supply from thesame state
Able to obtain largewater supply from theneighbouring state
Unable to obtainenough water supply
Electricity supplier Able to obtain largeelectricity supply fromthe same state
Able to obtain largeelectricity supply fromneighbouring state
Unable to obtainenough electricitysupply
Port facility lt 10 km proximity toport
lt 30 km proximity toport
gt 30 km proximity toport
Airport Availability ofinternational airport
Availability ofdomestic airport
Unavailability ofairport
Railway Complete network andwell maintainedrailway
Complete network ofrailway
Unavailability ofrailway
Political Economicand StrategicConsideration
Excellent tax benefitsMajor trading hubFew Environmentally Sensitive Area (ESA)
Good tax benefitsSmall trading hub
No tax benefitsNo trading hub
Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan
Land price 5 2 3Area available 4 3 3Water supplier 3 5 3Electricity supplier 4 5 4Methane supplier 5 5 5Highway facilities 4 5 5Railway facilities 0 5 4Airport 3 5 4
12 | P a g e
Port facilities 3 5 3Labor supply 5 5 5Waste disposal 5 5 5Incentives 3 5 4Total 44 55 48Percentage () 733 917 80Ranking 3 1 2
50 CONCLUSION
Based on the weighted evaluation done Pengerang Johor achieved the highest score and thus chosen
as the strategic location for the plant The deductions are rationalized as follows
The land available is limited and most expensive of all three sites however it is located in
Pengerang which is fully optimized for petrochemical production
The location is strategic because it is near major international route and deep water of up to 24
meters depth makes it possible for VLCC (Very Large Crude Carrier)
13 | P a g e
Very near to PETRONAS refinery and petrochemical integrated development project (RAPID)
hence material for methane is also available Apart from that continuous supply of steam is
available because the area uses of co-generation plant to power up It is much more efficient
than using electricity from national grid
Pengerang industry is from under Malaysia Economic Transformation Program which include
tax incentive and support from state and federal government
Pengerang has its own deep water port facility (Pengerang Deep Water Terminal) which is
designed specifically for loading and offloading of large carrier The port facility is a sheltered
harbor which is protected from storm and other risk of danger The port is able to store up to
5million cubic meters of material It has an area of 500 acres
About 50000 to 70000 specialised and general workers are expected for the Malaysiarsquos
Economic Transformation Program in Pengerang
Complete railway network for travelling between Kuala Lumpur and Singapore allows shorter
travelling time In return this ease monitoring from Kuala Lumpur
Few ESA Environmentally Sensitive Area in Pengerang makes it easier to dispose waste and
less restriction is imposed
60 PLANT LOCATION
14 | P a g e
70 REFERENCES
Ananta A amp Barichello R R (2012) Poverty and Global Recession in Southeast Asia Institute of
Southeast Asian Studies Retrieved from
httpsbooksgooglecommybooksid=
zx0BwAAQBAJamppg=PA126amplpg=PA126ampdq=industrial+incentives+in+negeri+sembilanampsourc
e=blampots=1EUc9HmVEHampsig=n_xwrtltNIvHoHlAIdkSXdj7xucamphl=enampsa=Xampredir_esc=yv=
nepageampq=industrial20incentives20in20negeri20sembilanampf=false
Benjamin N (2014 May 22) Johorrsquos Oil and Gas Sector Needs Up to 70000 Skilled Workers The
Star Retrieved from
15 | P a g e
httpwwwthestarcommynewscommunity20140522
opportunity-for-youths-johors-oil-and-gas-sector-needs-up-to-70000-skilled-workers
Jabatan Bekalan Air (nd) Senarai Syarikat Air Negeri Retrieved from
httpwwwjbagovmy
indexphpdirektori-jbasenarai-syarikat-air-negeri
Johor Petroleum Development Corporation (2015) Pengerang Integrated Petroleum Project (PIPC)
Retrieved from httpdutchchamsgwp-contentuploads201503Investor-deck-2015pdf
Kualiti Alam (nd) Waste Management Centre Retrieved from httpwwwkualitialam
commycontactus-waste-management-centrephp
Negeri Sembilan Investment Centre (nd) Industrial Current Status on Available Factories for
LeaseSale Retrieved from httpwwwnsiccommyfactoryhtml
Patel N K (nd) Acetylene Retrieved from httpnptelacincourses103106108Lecture207pdf
Pengerang Integrated Petroleum Complex (nd) Retrieved from httpwwwmprcgovmyour
businessespengerang-integrated-petroleum-complex-pipc
PENGERANG Petroleum and Maritime Industrial Park (2012) Strategic Location of Pengerang Johor
Malaysia Retrieved from httppengerangmaritimecommylocationhtml
Petronas RAPID Project Southern Johor Malaysia (nd) Retrieved from httpwwwhydrocarbons-
technologycomprojectspetronas-rapid-project-malaysia
Petronas Signs Contract for Pengerang Raw Water Suply Project (2014 May 2) The Malay
Mail Online Retrieved from
httpwwwthemalaymailonlinecommoneyarticlepetronas
signs contract-for pengerang-raw-water-supply-project
Petronas (2014 November 3) PETRONAS Kicks Off Its Pengerang Co-Generation Power Plant [Press
Release] Retrieved from
httpwwwpetronascommymedia-relationsmedia
releasesPagesarticlePETRONAS- KICKS-OFF-ITS-PENGERANG-CO-GENERATION-POWER
PLANTaspx
16 | P a g e
Port of Port Dickson (Malaysia) (nd) Retrieved from
httpswwwsearatescomportport_dickson_myhtm
Rapid Land Woes (2014 May 23) The Star Retrieved from
httpwwwthestarcommybusinessbusiness- news20140523rapid-land-woes
Tenaga Nasional Berhad (nd) Jimah Retrieved from httpswwwtnbcommytnbfjimahphp
Trotus I T Zimmerman T amp Schuth F (2013) Catalytic Reactions of Acetylene A Feedstock for
The Chemical Industry Revisited Chem Rev 114(3) pp 1761-1782 Retrieved from
httpswwwresearchgatenetpublication258524881_Catalytic_Reactions_of_Acetylene_
A_Feedstock_for_the_Chemical_Industry_Revisited
17 | P a g e
Methane supplier
Shellrsquos Bintulu GTL Plant Technip Reunidas Petronas Gas Berhad (PGB)
Highway - Pan-Borneo Highway- Bintulu-Miri Highway
- Senai-Desaru Expressway- Eastern Dispersal Link (EDL)- Johor Bahru Coastal Road
- Lebuhraya Seremban-Port Dickson- North-South Expressway (NSE) - PLUS Malaysia Berhad
Railway None Stesen Kereta Api Johor Bahru
Seremban Railway Station
Airport - Bintulu Airport - Senai International Airport- Changi International Airport
- Kuala Lumpur International Airport (KLIA)
Port facility Bintulu Port Sdn Bhd Pengerang Deepwater Terminal
Port Dickson
Labor supply Large population Large population Large PopulationWaste disposal Tanjung Kidurong Sungai Rengit Kualiti Alam Sdn BhdPolitical Economic and Strategic consideration
- Vast raw material availability- Speed economic growth due to oil and gas industry- GDP increase by 7 from 1995 to 2000- High technology incentive
- Access to existing major international shipping lanes (Middle East-Singapore-China)- Proximity to major trading hub (Singapore)- Deepwater of 24m (enables VLCCampULCC)- Few Environmentally Sensitive Area (ESA)- Close to Senai International Airport
- Foreign investors hold 100 ownership of all new projects regardless of export levels- Additional incentives under the Investment Incentive Act
40 WEIGHTED EVALUATION
The three proposed sites are evaluated in a table as per below The ranking was done from 1 (poor) 2 (fair) 3 (good) 4 (very good) to 5 (excellent)
Factors 5-4 Marks 3-2 Marks 1-0 MarksLand price Price of land below
than RM 100Price of land morethan RM 100
Price of land more than RM 500
Raw material supplier
Able to obtain largeraw material supply
Able to obtain largeraw material supply
Able to obtain largeraw material supply
11 | P a g e
locally from nearneighbouring countries
locally or from nearneighbouring countries
Water Supplier Able to obtain largewater supply from thesame state
Able to obtain largewater supply from theneighbouring state
Unable to obtainenough water supply
Electricity supplier Able to obtain largeelectricity supply fromthe same state
Able to obtain largeelectricity supply fromneighbouring state
Unable to obtainenough electricitysupply
Port facility lt 10 km proximity toport
lt 30 km proximity toport
gt 30 km proximity toport
Airport Availability ofinternational airport
Availability ofdomestic airport
Unavailability ofairport
Railway Complete network andwell maintainedrailway
Complete network ofrailway
Unavailability ofrailway
Political Economicand StrategicConsideration
Excellent tax benefitsMajor trading hubFew Environmentally Sensitive Area (ESA)
Good tax benefitsSmall trading hub
No tax benefitsNo trading hub
Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan
Land price 5 2 3Area available 4 3 3Water supplier 3 5 3Electricity supplier 4 5 4Methane supplier 5 5 5Highway facilities 4 5 5Railway facilities 0 5 4Airport 3 5 4
12 | P a g e
Port facilities 3 5 3Labor supply 5 5 5Waste disposal 5 5 5Incentives 3 5 4Total 44 55 48Percentage () 733 917 80Ranking 3 1 2
50 CONCLUSION
Based on the weighted evaluation done Pengerang Johor achieved the highest score and thus chosen
as the strategic location for the plant The deductions are rationalized as follows
The land available is limited and most expensive of all three sites however it is located in
Pengerang which is fully optimized for petrochemical production
The location is strategic because it is near major international route and deep water of up to 24
meters depth makes it possible for VLCC (Very Large Crude Carrier)
13 | P a g e
Very near to PETRONAS refinery and petrochemical integrated development project (RAPID)
hence material for methane is also available Apart from that continuous supply of steam is
available because the area uses of co-generation plant to power up It is much more efficient
than using electricity from national grid
Pengerang industry is from under Malaysia Economic Transformation Program which include
tax incentive and support from state and federal government
Pengerang has its own deep water port facility (Pengerang Deep Water Terminal) which is
designed specifically for loading and offloading of large carrier The port facility is a sheltered
harbor which is protected from storm and other risk of danger The port is able to store up to
5million cubic meters of material It has an area of 500 acres
About 50000 to 70000 specialised and general workers are expected for the Malaysiarsquos
Economic Transformation Program in Pengerang
Complete railway network for travelling between Kuala Lumpur and Singapore allows shorter
travelling time In return this ease monitoring from Kuala Lumpur
Few ESA Environmentally Sensitive Area in Pengerang makes it easier to dispose waste and
less restriction is imposed
60 PLANT LOCATION
14 | P a g e
70 REFERENCES
Ananta A amp Barichello R R (2012) Poverty and Global Recession in Southeast Asia Institute of
Southeast Asian Studies Retrieved from
httpsbooksgooglecommybooksid=
zx0BwAAQBAJamppg=PA126amplpg=PA126ampdq=industrial+incentives+in+negeri+sembilanampsourc
e=blampots=1EUc9HmVEHampsig=n_xwrtltNIvHoHlAIdkSXdj7xucamphl=enampsa=Xampredir_esc=yv=
nepageampq=industrial20incentives20in20negeri20sembilanampf=false
Benjamin N (2014 May 22) Johorrsquos Oil and Gas Sector Needs Up to 70000 Skilled Workers The
Star Retrieved from
15 | P a g e
httpwwwthestarcommynewscommunity20140522
opportunity-for-youths-johors-oil-and-gas-sector-needs-up-to-70000-skilled-workers
Jabatan Bekalan Air (nd) Senarai Syarikat Air Negeri Retrieved from
httpwwwjbagovmy
indexphpdirektori-jbasenarai-syarikat-air-negeri
Johor Petroleum Development Corporation (2015) Pengerang Integrated Petroleum Project (PIPC)
Retrieved from httpdutchchamsgwp-contentuploads201503Investor-deck-2015pdf
Kualiti Alam (nd) Waste Management Centre Retrieved from httpwwwkualitialam
commycontactus-waste-management-centrephp
Negeri Sembilan Investment Centre (nd) Industrial Current Status on Available Factories for
LeaseSale Retrieved from httpwwwnsiccommyfactoryhtml
Patel N K (nd) Acetylene Retrieved from httpnptelacincourses103106108Lecture207pdf
Pengerang Integrated Petroleum Complex (nd) Retrieved from httpwwwmprcgovmyour
businessespengerang-integrated-petroleum-complex-pipc
PENGERANG Petroleum and Maritime Industrial Park (2012) Strategic Location of Pengerang Johor
Malaysia Retrieved from httppengerangmaritimecommylocationhtml
Petronas RAPID Project Southern Johor Malaysia (nd) Retrieved from httpwwwhydrocarbons-
technologycomprojectspetronas-rapid-project-malaysia
Petronas Signs Contract for Pengerang Raw Water Suply Project (2014 May 2) The Malay
Mail Online Retrieved from
httpwwwthemalaymailonlinecommoneyarticlepetronas
signs contract-for pengerang-raw-water-supply-project
Petronas (2014 November 3) PETRONAS Kicks Off Its Pengerang Co-Generation Power Plant [Press
Release] Retrieved from
httpwwwpetronascommymedia-relationsmedia
releasesPagesarticlePETRONAS- KICKS-OFF-ITS-PENGERANG-CO-GENERATION-POWER
PLANTaspx
16 | P a g e
Port of Port Dickson (Malaysia) (nd) Retrieved from
httpswwwsearatescomportport_dickson_myhtm
Rapid Land Woes (2014 May 23) The Star Retrieved from
httpwwwthestarcommybusinessbusiness- news20140523rapid-land-woes
Tenaga Nasional Berhad (nd) Jimah Retrieved from httpswwwtnbcommytnbfjimahphp
Trotus I T Zimmerman T amp Schuth F (2013) Catalytic Reactions of Acetylene A Feedstock for
The Chemical Industry Revisited Chem Rev 114(3) pp 1761-1782 Retrieved from
httpswwwresearchgatenetpublication258524881_Catalytic_Reactions_of_Acetylene_
A_Feedstock_for_the_Chemical_Industry_Revisited
17 | P a g e
locally from nearneighbouring countries
locally or from nearneighbouring countries
Water Supplier Able to obtain largewater supply from thesame state
Able to obtain largewater supply from theneighbouring state
Unable to obtainenough water supply
Electricity supplier Able to obtain largeelectricity supply fromthe same state
Able to obtain largeelectricity supply fromneighbouring state
Unable to obtainenough electricitysupply
Port facility lt 10 km proximity toport
lt 30 km proximity toport
gt 30 km proximity toport
Airport Availability ofinternational airport
Availability ofdomestic airport
Unavailability ofairport
Railway Complete network andwell maintainedrailway
Complete network ofrailway
Unavailability ofrailway
Political Economicand StrategicConsideration
Excellent tax benefitsMajor trading hubFew Environmentally Sensitive Area (ESA)
Good tax benefitsSmall trading hub
No tax benefitsNo trading hub
Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan
Land price 5 2 3Area available 4 3 3Water supplier 3 5 3Electricity supplier 4 5 4Methane supplier 5 5 5Highway facilities 4 5 5Railway facilities 0 5 4Airport 3 5 4
12 | P a g e
Port facilities 3 5 3Labor supply 5 5 5Waste disposal 5 5 5Incentives 3 5 4Total 44 55 48Percentage () 733 917 80Ranking 3 1 2
50 CONCLUSION
Based on the weighted evaluation done Pengerang Johor achieved the highest score and thus chosen
as the strategic location for the plant The deductions are rationalized as follows
The land available is limited and most expensive of all three sites however it is located in
Pengerang which is fully optimized for petrochemical production
The location is strategic because it is near major international route and deep water of up to 24
meters depth makes it possible for VLCC (Very Large Crude Carrier)
13 | P a g e
Very near to PETRONAS refinery and petrochemical integrated development project (RAPID)
hence material for methane is also available Apart from that continuous supply of steam is
available because the area uses of co-generation plant to power up It is much more efficient
than using electricity from national grid
Pengerang industry is from under Malaysia Economic Transformation Program which include
tax incentive and support from state and federal government
Pengerang has its own deep water port facility (Pengerang Deep Water Terminal) which is
designed specifically for loading and offloading of large carrier The port facility is a sheltered
harbor which is protected from storm and other risk of danger The port is able to store up to
5million cubic meters of material It has an area of 500 acres
About 50000 to 70000 specialised and general workers are expected for the Malaysiarsquos
Economic Transformation Program in Pengerang
Complete railway network for travelling between Kuala Lumpur and Singapore allows shorter
travelling time In return this ease monitoring from Kuala Lumpur
Few ESA Environmentally Sensitive Area in Pengerang makes it easier to dispose waste and
less restriction is imposed
60 PLANT LOCATION
14 | P a g e
70 REFERENCES
Ananta A amp Barichello R R (2012) Poverty and Global Recession in Southeast Asia Institute of
Southeast Asian Studies Retrieved from
httpsbooksgooglecommybooksid=
zx0BwAAQBAJamppg=PA126amplpg=PA126ampdq=industrial+incentives+in+negeri+sembilanampsourc
e=blampots=1EUc9HmVEHampsig=n_xwrtltNIvHoHlAIdkSXdj7xucamphl=enampsa=Xampredir_esc=yv=
nepageampq=industrial20incentives20in20negeri20sembilanampf=false
Benjamin N (2014 May 22) Johorrsquos Oil and Gas Sector Needs Up to 70000 Skilled Workers The
Star Retrieved from
15 | P a g e
httpwwwthestarcommynewscommunity20140522
opportunity-for-youths-johors-oil-and-gas-sector-needs-up-to-70000-skilled-workers
Jabatan Bekalan Air (nd) Senarai Syarikat Air Negeri Retrieved from
httpwwwjbagovmy
indexphpdirektori-jbasenarai-syarikat-air-negeri
Johor Petroleum Development Corporation (2015) Pengerang Integrated Petroleum Project (PIPC)
Retrieved from httpdutchchamsgwp-contentuploads201503Investor-deck-2015pdf
Kualiti Alam (nd) Waste Management Centre Retrieved from httpwwwkualitialam
commycontactus-waste-management-centrephp
Negeri Sembilan Investment Centre (nd) Industrial Current Status on Available Factories for
LeaseSale Retrieved from httpwwwnsiccommyfactoryhtml
Patel N K (nd) Acetylene Retrieved from httpnptelacincourses103106108Lecture207pdf
Pengerang Integrated Petroleum Complex (nd) Retrieved from httpwwwmprcgovmyour
businessespengerang-integrated-petroleum-complex-pipc
PENGERANG Petroleum and Maritime Industrial Park (2012) Strategic Location of Pengerang Johor
Malaysia Retrieved from httppengerangmaritimecommylocationhtml
Petronas RAPID Project Southern Johor Malaysia (nd) Retrieved from httpwwwhydrocarbons-
technologycomprojectspetronas-rapid-project-malaysia
Petronas Signs Contract for Pengerang Raw Water Suply Project (2014 May 2) The Malay
Mail Online Retrieved from
httpwwwthemalaymailonlinecommoneyarticlepetronas
signs contract-for pengerang-raw-water-supply-project
Petronas (2014 November 3) PETRONAS Kicks Off Its Pengerang Co-Generation Power Plant [Press
Release] Retrieved from
httpwwwpetronascommymedia-relationsmedia
releasesPagesarticlePETRONAS- KICKS-OFF-ITS-PENGERANG-CO-GENERATION-POWER
PLANTaspx
16 | P a g e
Port of Port Dickson (Malaysia) (nd) Retrieved from
httpswwwsearatescomportport_dickson_myhtm
Rapid Land Woes (2014 May 23) The Star Retrieved from
httpwwwthestarcommybusinessbusiness- news20140523rapid-land-woes
Tenaga Nasional Berhad (nd) Jimah Retrieved from httpswwwtnbcommytnbfjimahphp
Trotus I T Zimmerman T amp Schuth F (2013) Catalytic Reactions of Acetylene A Feedstock for
The Chemical Industry Revisited Chem Rev 114(3) pp 1761-1782 Retrieved from
httpswwwresearchgatenetpublication258524881_Catalytic_Reactions_of_Acetylene_
A_Feedstock_for_the_Chemical_Industry_Revisited
17 | P a g e
Port facilities 3 5 3Labor supply 5 5 5Waste disposal 5 5 5Incentives 3 5 4Total 44 55 48Percentage () 733 917 80Ranking 3 1 2
50 CONCLUSION
Based on the weighted evaluation done Pengerang Johor achieved the highest score and thus chosen
as the strategic location for the plant The deductions are rationalized as follows
The land available is limited and most expensive of all three sites however it is located in
Pengerang which is fully optimized for petrochemical production
The location is strategic because it is near major international route and deep water of up to 24
meters depth makes it possible for VLCC (Very Large Crude Carrier)
13 | P a g e
Very near to PETRONAS refinery and petrochemical integrated development project (RAPID)
hence material for methane is also available Apart from that continuous supply of steam is
available because the area uses of co-generation plant to power up It is much more efficient
than using electricity from national grid
Pengerang industry is from under Malaysia Economic Transformation Program which include
tax incentive and support from state and federal government
Pengerang has its own deep water port facility (Pengerang Deep Water Terminal) which is
designed specifically for loading and offloading of large carrier The port facility is a sheltered
harbor which is protected from storm and other risk of danger The port is able to store up to
5million cubic meters of material It has an area of 500 acres
About 50000 to 70000 specialised and general workers are expected for the Malaysiarsquos
Economic Transformation Program in Pengerang
Complete railway network for travelling between Kuala Lumpur and Singapore allows shorter
travelling time In return this ease monitoring from Kuala Lumpur
Few ESA Environmentally Sensitive Area in Pengerang makes it easier to dispose waste and
less restriction is imposed
60 PLANT LOCATION
14 | P a g e
70 REFERENCES
Ananta A amp Barichello R R (2012) Poverty and Global Recession in Southeast Asia Institute of
Southeast Asian Studies Retrieved from
httpsbooksgooglecommybooksid=
zx0BwAAQBAJamppg=PA126amplpg=PA126ampdq=industrial+incentives+in+negeri+sembilanampsourc
e=blampots=1EUc9HmVEHampsig=n_xwrtltNIvHoHlAIdkSXdj7xucamphl=enampsa=Xampredir_esc=yv=
nepageampq=industrial20incentives20in20negeri20sembilanampf=false
Benjamin N (2014 May 22) Johorrsquos Oil and Gas Sector Needs Up to 70000 Skilled Workers The
Star Retrieved from
15 | P a g e
httpwwwthestarcommynewscommunity20140522
opportunity-for-youths-johors-oil-and-gas-sector-needs-up-to-70000-skilled-workers
Jabatan Bekalan Air (nd) Senarai Syarikat Air Negeri Retrieved from
httpwwwjbagovmy
indexphpdirektori-jbasenarai-syarikat-air-negeri
Johor Petroleum Development Corporation (2015) Pengerang Integrated Petroleum Project (PIPC)
Retrieved from httpdutchchamsgwp-contentuploads201503Investor-deck-2015pdf
Kualiti Alam (nd) Waste Management Centre Retrieved from httpwwwkualitialam
commycontactus-waste-management-centrephp
Negeri Sembilan Investment Centre (nd) Industrial Current Status on Available Factories for
LeaseSale Retrieved from httpwwwnsiccommyfactoryhtml
Patel N K (nd) Acetylene Retrieved from httpnptelacincourses103106108Lecture207pdf
Pengerang Integrated Petroleum Complex (nd) Retrieved from httpwwwmprcgovmyour
businessespengerang-integrated-petroleum-complex-pipc
PENGERANG Petroleum and Maritime Industrial Park (2012) Strategic Location of Pengerang Johor
Malaysia Retrieved from httppengerangmaritimecommylocationhtml
Petronas RAPID Project Southern Johor Malaysia (nd) Retrieved from httpwwwhydrocarbons-
technologycomprojectspetronas-rapid-project-malaysia
Petronas Signs Contract for Pengerang Raw Water Suply Project (2014 May 2) The Malay
Mail Online Retrieved from
httpwwwthemalaymailonlinecommoneyarticlepetronas
signs contract-for pengerang-raw-water-supply-project
Petronas (2014 November 3) PETRONAS Kicks Off Its Pengerang Co-Generation Power Plant [Press
Release] Retrieved from
httpwwwpetronascommymedia-relationsmedia
releasesPagesarticlePETRONAS- KICKS-OFF-ITS-PENGERANG-CO-GENERATION-POWER
PLANTaspx
16 | P a g e
Port of Port Dickson (Malaysia) (nd) Retrieved from
httpswwwsearatescomportport_dickson_myhtm
Rapid Land Woes (2014 May 23) The Star Retrieved from
httpwwwthestarcommybusinessbusiness- news20140523rapid-land-woes
Tenaga Nasional Berhad (nd) Jimah Retrieved from httpswwwtnbcommytnbfjimahphp
Trotus I T Zimmerman T amp Schuth F (2013) Catalytic Reactions of Acetylene A Feedstock for
The Chemical Industry Revisited Chem Rev 114(3) pp 1761-1782 Retrieved from
httpswwwresearchgatenetpublication258524881_Catalytic_Reactions_of_Acetylene_
A_Feedstock_for_the_Chemical_Industry_Revisited
17 | P a g e
Very near to PETRONAS refinery and petrochemical integrated development project (RAPID)
hence material for methane is also available Apart from that continuous supply of steam is
available because the area uses of co-generation plant to power up It is much more efficient
than using electricity from national grid
Pengerang industry is from under Malaysia Economic Transformation Program which include
tax incentive and support from state and federal government
Pengerang has its own deep water port facility (Pengerang Deep Water Terminal) which is
designed specifically for loading and offloading of large carrier The port facility is a sheltered
harbor which is protected from storm and other risk of danger The port is able to store up to
5million cubic meters of material It has an area of 500 acres
About 50000 to 70000 specialised and general workers are expected for the Malaysiarsquos
Economic Transformation Program in Pengerang
Complete railway network for travelling between Kuala Lumpur and Singapore allows shorter
travelling time In return this ease monitoring from Kuala Lumpur
Few ESA Environmentally Sensitive Area in Pengerang makes it easier to dispose waste and
less restriction is imposed
60 PLANT LOCATION
14 | P a g e
70 REFERENCES
Ananta A amp Barichello R R (2012) Poverty and Global Recession in Southeast Asia Institute of
Southeast Asian Studies Retrieved from
httpsbooksgooglecommybooksid=
zx0BwAAQBAJamppg=PA126amplpg=PA126ampdq=industrial+incentives+in+negeri+sembilanampsourc
e=blampots=1EUc9HmVEHampsig=n_xwrtltNIvHoHlAIdkSXdj7xucamphl=enampsa=Xampredir_esc=yv=
nepageampq=industrial20incentives20in20negeri20sembilanampf=false
Benjamin N (2014 May 22) Johorrsquos Oil and Gas Sector Needs Up to 70000 Skilled Workers The
Star Retrieved from
15 | P a g e
httpwwwthestarcommynewscommunity20140522
opportunity-for-youths-johors-oil-and-gas-sector-needs-up-to-70000-skilled-workers
Jabatan Bekalan Air (nd) Senarai Syarikat Air Negeri Retrieved from
httpwwwjbagovmy
indexphpdirektori-jbasenarai-syarikat-air-negeri
Johor Petroleum Development Corporation (2015) Pengerang Integrated Petroleum Project (PIPC)
Retrieved from httpdutchchamsgwp-contentuploads201503Investor-deck-2015pdf
Kualiti Alam (nd) Waste Management Centre Retrieved from httpwwwkualitialam
commycontactus-waste-management-centrephp
Negeri Sembilan Investment Centre (nd) Industrial Current Status on Available Factories for
LeaseSale Retrieved from httpwwwnsiccommyfactoryhtml
Patel N K (nd) Acetylene Retrieved from httpnptelacincourses103106108Lecture207pdf
Pengerang Integrated Petroleum Complex (nd) Retrieved from httpwwwmprcgovmyour
businessespengerang-integrated-petroleum-complex-pipc
PENGERANG Petroleum and Maritime Industrial Park (2012) Strategic Location of Pengerang Johor
Malaysia Retrieved from httppengerangmaritimecommylocationhtml
Petronas RAPID Project Southern Johor Malaysia (nd) Retrieved from httpwwwhydrocarbons-
technologycomprojectspetronas-rapid-project-malaysia
Petronas Signs Contract for Pengerang Raw Water Suply Project (2014 May 2) The Malay
Mail Online Retrieved from
httpwwwthemalaymailonlinecommoneyarticlepetronas
signs contract-for pengerang-raw-water-supply-project
Petronas (2014 November 3) PETRONAS Kicks Off Its Pengerang Co-Generation Power Plant [Press
Release] Retrieved from
httpwwwpetronascommymedia-relationsmedia
releasesPagesarticlePETRONAS- KICKS-OFF-ITS-PENGERANG-CO-GENERATION-POWER
PLANTaspx
16 | P a g e
Port of Port Dickson (Malaysia) (nd) Retrieved from
httpswwwsearatescomportport_dickson_myhtm
Rapid Land Woes (2014 May 23) The Star Retrieved from
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Tenaga Nasional Berhad (nd) Jimah Retrieved from httpswwwtnbcommytnbfjimahphp
Trotus I T Zimmerman T amp Schuth F (2013) Catalytic Reactions of Acetylene A Feedstock for
The Chemical Industry Revisited Chem Rev 114(3) pp 1761-1782 Retrieved from
httpswwwresearchgatenetpublication258524881_Catalytic_Reactions_of_Acetylene_
A_Feedstock_for_the_Chemical_Industry_Revisited
17 | P a g e
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Kualiti Alam (nd) Waste Management Centre Retrieved from httpwwwkualitialam
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Negeri Sembilan Investment Centre (nd) Industrial Current Status on Available Factories for
LeaseSale Retrieved from httpwwwnsiccommyfactoryhtml
Patel N K (nd) Acetylene Retrieved from httpnptelacincourses103106108Lecture207pdf
Pengerang Integrated Petroleum Complex (nd) Retrieved from httpwwwmprcgovmyour
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Malaysia Retrieved from httppengerangmaritimecommylocationhtml
Petronas RAPID Project Southern Johor Malaysia (nd) Retrieved from httpwwwhydrocarbons-
technologycomprojectspetronas-rapid-project-malaysia
Petronas Signs Contract for Pengerang Raw Water Suply Project (2014 May 2) The Malay
Mail Online Retrieved from
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signs contract-for pengerang-raw-water-supply-project
Petronas (2014 November 3) PETRONAS Kicks Off Its Pengerang Co-Generation Power Plant [Press
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PLANTaspx
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httpswwwsearatescomportport_dickson_myhtm
Rapid Land Woes (2014 May 23) The Star Retrieved from
httpwwwthestarcommybusinessbusiness- news20140523rapid-land-woes
Tenaga Nasional Berhad (nd) Jimah Retrieved from httpswwwtnbcommytnbfjimahphp
Trotus I T Zimmerman T amp Schuth F (2013) Catalytic Reactions of Acetylene A Feedstock for
The Chemical Industry Revisited Chem Rev 114(3) pp 1761-1782 Retrieved from
httpswwwresearchgatenetpublication258524881_Catalytic_Reactions_of_Acetylene_
A_Feedstock_for_the_Chemical_Industry_Revisited
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opportunity-for-youths-johors-oil-and-gas-sector-needs-up-to-70000-skilled-workers
Jabatan Bekalan Air (nd) Senarai Syarikat Air Negeri Retrieved from
httpwwwjbagovmy
indexphpdirektori-jbasenarai-syarikat-air-negeri
Johor Petroleum Development Corporation (2015) Pengerang Integrated Petroleum Project (PIPC)
Retrieved from httpdutchchamsgwp-contentuploads201503Investor-deck-2015pdf
Kualiti Alam (nd) Waste Management Centre Retrieved from httpwwwkualitialam
commycontactus-waste-management-centrephp
Negeri Sembilan Investment Centre (nd) Industrial Current Status on Available Factories for
LeaseSale Retrieved from httpwwwnsiccommyfactoryhtml
Patel N K (nd) Acetylene Retrieved from httpnptelacincourses103106108Lecture207pdf
Pengerang Integrated Petroleum Complex (nd) Retrieved from httpwwwmprcgovmyour
businessespengerang-integrated-petroleum-complex-pipc
PENGERANG Petroleum and Maritime Industrial Park (2012) Strategic Location of Pengerang Johor
Malaysia Retrieved from httppengerangmaritimecommylocationhtml
Petronas RAPID Project Southern Johor Malaysia (nd) Retrieved from httpwwwhydrocarbons-
technologycomprojectspetronas-rapid-project-malaysia
Petronas Signs Contract for Pengerang Raw Water Suply Project (2014 May 2) The Malay
Mail Online Retrieved from
httpwwwthemalaymailonlinecommoneyarticlepetronas
signs contract-for pengerang-raw-water-supply-project
Petronas (2014 November 3) PETRONAS Kicks Off Its Pengerang Co-Generation Power Plant [Press
Release] Retrieved from
httpwwwpetronascommymedia-relationsmedia
releasesPagesarticlePETRONAS- KICKS-OFF-ITS-PENGERANG-CO-GENERATION-POWER
PLANTaspx
16 | P a g e
Port of Port Dickson (Malaysia) (nd) Retrieved from
httpswwwsearatescomportport_dickson_myhtm
Rapid Land Woes (2014 May 23) The Star Retrieved from
httpwwwthestarcommybusinessbusiness- news20140523rapid-land-woes
Tenaga Nasional Berhad (nd) Jimah Retrieved from httpswwwtnbcommytnbfjimahphp
Trotus I T Zimmerman T amp Schuth F (2013) Catalytic Reactions of Acetylene A Feedstock for
The Chemical Industry Revisited Chem Rev 114(3) pp 1761-1782 Retrieved from
httpswwwresearchgatenetpublication258524881_Catalytic_Reactions_of_Acetylene_
A_Feedstock_for_the_Chemical_Industry_Revisited
17 | P a g e
Port of Port Dickson (Malaysia) (nd) Retrieved from
httpswwwsearatescomportport_dickson_myhtm
Rapid Land Woes (2014 May 23) The Star Retrieved from
httpwwwthestarcommybusinessbusiness- news20140523rapid-land-woes
Tenaga Nasional Berhad (nd) Jimah Retrieved from httpswwwtnbcommytnbfjimahphp
Trotus I T Zimmerman T amp Schuth F (2013) Catalytic Reactions of Acetylene A Feedstock for
The Chemical Industry Revisited Chem Rev 114(3) pp 1761-1782 Retrieved from
httpswwwresearchgatenetpublication258524881_Catalytic_Reactions_of_Acetylene_
A_Feedstock_for_the_Chemical_Industry_Revisited
17 | P a g e