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Petronas-Saudi Malaysian refinery restarts CDU: Sources

Published: Updated:

Pengerang Refining and Petrochemical (PrefChem), a joint venture between Petronas and Saudi Aramco, has begun to restart a crude distillation unit (CDU) at its oil refinery in Malaysia, two sources familiar with the matter said on Friday.

Crude oil was fed into the unit earlier this week, they said.

The Pengerang Refining development, part of Petronas’ $27 billion Pengerang Integrated Complex, consists of a 300,000 barrels-per-day (bpd) oil refinery and a petrochemical complex with a production capacity of 7.7 million tons per year in the southern Malaysian state of Johor.

The project, originally known as RAPID, or Refinery and Petrochemical Integrated Development, was shut in April after a fire damaged its atmospheric residue desulphurisation (ARDS) unit.

It had been scheduled to restart last month but that was pushed back to August, they said.

Repairs at the ARDS unit were expected to take months so the refinery has modified the type of crude it processes to low-sulphur oil such as Murban crude from Abu Dhabi, the sources said.

The refinery’s strong demand for Murban crude saw Malaysia’s imports of the oil jump to about 4.6 million barrels in June and July, Refinitiv data showed.