Hengyuan’s US$160 mn Port Dickson projects approved by board

The Board of Directors of Malaysia-based petroleum manufacturing and refining company Hengyuan Refining Company Bhd, formerly known as Shell Refining Co (Federation of Malaya) Bhd (Shell Refining), has approved two projects worth a total of US$160 million (RM684.5 million) at the company’s refining complex at Port Dickson, Malaysia.

The company announced that the board approved the investment for a Euro 4M mogas plant.

The total investment cost for the project is US$135million +/- 10% and it is expected to come on-stream by the second half of 2018.

The Euro 4M plant is an integrated complex to desulfurize the full range cat cracked gasoline produced by its long residue catalytic cracking unit (LRCCU).

It explained the design uses a combination of hydro-processing and liquid-liquid extraction technology.  The technology was used successfully by the Shandong Hengyuan Petrochemical Company Ltd in its Shandong based refinery and chemical complex which produces Euro 6 grade mogas.

The plant will have a capacity of 1.15 million tonnes per annum. This investment ensures Hengyuan Refining is well placed to meet the Euro 4M mogas specifications mandated by the Malaysian regulatory authorities by 1 October 2018.

“The Euro 4M plant can be further upgraded to produce Euro 5M mogas when the specification change is mandated, which is expected to be from 2025 onwards.

Hengyuan also said the board gave its go-ahead for the investment for the Atlas II project within its refining complex in Port Dickson.

It explained the Atlas II comprised of the replacement of the top dome and the catalyst separation system of the regenerator reactor of the LRCCU.

The replacement is required as the current system will be reaching end of life post the 2018 turnaround.

“This investment ensures Hengyuan can continue to operate the LRCCU unit with the right level of equipment integrity and assures that the upgrading of residual fuel to high value products can be continued in future. As such, this investment underpins Hengyuan’s commitment to long term sustainable refining in Malaysia.

It said the total investment cost for the project is US$25million +/- 10% and it was expected to come on-stream after the Q3 2018 major site turnaround.