Petronas details RAPID project contract awards

HOUSTON, Aug. 11
08/11/2014
By Robert Brelsford
OGJ Downstream Technology Editor

Malaysias state-owned Petronas has confirmed the award of 11 major contracts related
to critical milestones in the development of its refinery and petrochemical integrated
development (RAPID) complex at Pengerang in southeastern Johor, Malaysia (OGJ
Online, May 13, 2011).
Five of the contracts are for engineering, procurement, construction, and
commissioning (EPCC) for RAPIDs refinery and steam cracker component,
Petronas said.
The EPCC contracts were awarded to:
A consortium of CTCI Corp., Chiyoda Corp., Synerlitz (Malaysia) Sdn. Bhd., and MIE
Industrial Sdn. Bhd. for the residue fluid catalytic cracking units, LPG treating unit,
propylene recovery unit, and caustic neutralization units.
Sinopec Engineering (Group) Co. Ltd. and Sinopec Engineering Group (Malaysia) Sdn.
Bhd. for the crude distillation unit, atmospheric residue desulfurization units, and
hydrogen collection and distribution units (OGJ Online, Aug. 7, 2014).
Tecnicas Reunidas SA and Tecnicas Reunidas Malaysia Sdn. Bhd. for the kerosene
hydrotreating unit, diesel hydrotreating unit, naphtha hydrotreating unit, cracked-
naphtha hydrotreating unit, and continuous catalytic reformer units.
Petrofac International (UAE) LLC and Petrofac E&C Sdn. Bhd. for the amine recovery
units, sulfur recovery units, sour water stripping units, liquid sulfur storage unit, and
sulfur solidification units.
Toyo Engineering Corp. and Toyo Engineering & Construction Sdn. Bhd. for the steam
cracker complex.

The remaining six contracts, which involve construction of the projects related
infrastructure, were awarded to:
A consortium of UEM Builders Bhd. and Projek Penyelenggaraan Lebuhraya Bhd. for
EPCC of temporary common-camp installations and infrastructure.
Zelan Construction Sdn. Bhd. for the basic design and EPCC of the material offloading
facilities jetty at Tanjung Setapa (OGJ Online, July 25, 2014).
WCT Bhd. for common construction access and permanent roads within the project
site.
Syarikat Ismail Ibrahim Sdn. Bhd. for the temporary access road within the project
site.
Bumi Dagang Sdn. Bhd. for construction of the main haulage road as well as an
access road outside the project site.
 Gadang Engineering (M) Sdn. Bhd. and Menta Construction Sdn. Bhd. for the Phase 2
site preparation works.
The company previously let a program management consultancy (PMC) contract,
which includes overall project and site management, to a Technip SA-led joint venture
with Fluor Corp. for specific EPCC packages within RAPID (OGJ Online, June 27, 2014).

Additionally, Petronas let an EPCC contract and long-term service agreement in June to
a consortium of Siemens AG, Siemens Malaysia Sdn. Bhd., and MMC Engineering
Services Sdn. Bhd. for the Pengerang cogeneration plant, one of RAPIDs associated
installations, the company said.

Petronas also let two procurement, construction, and commissioning (PCC) contracts in
April for other RAPID-related associated installations.
The first PCC contract was awarded to a consortium of Asia Baru Construction Sdn. Bhd.
and Putra Perdana Construction Sdn. Bhd. for the Raw Water Supply Project, which
will support RAPIDs raw water needs, while a second PCC contract went to a
consortium of PBJV Group Sdn. Bhd. and CPM Construction Sdn. Bhd. for the
Pengerang Gas Pipeline Project (PGPP), Petronas said.
PGPP is part of the expansion of Malaysias Peninsular Gas Utilization pipeline network
(OGJ Online, Sept. 18, 2000) to the RAPID complex, subsidiary Petronas Gas Bhd. said in
an Apr. 23 filing with Bursa Malaysia.

Other associated installations to be included in RAPID will be Regasification Terminal

2 (RGT2), an air-separation unit, as well as crude and product tanks, the company said.
Petronas said it currently estimates RAPID will cost $16 billion, while associated
installations for the project will involve an additional investment of about $11 billion
(OGJ Online, July 25, 2014).
RAPIDs refinery start-up is scheduled to take place by early 2019, the company said.

Source : http://www.ogj.com/articles/2014/08/petronas-details-rapid-project-contract-
awards.html
PENGERANG INTEGRATED PETROLEUM COMPLEX (PIPC)
The focus on oil and gas projects, arising from the Economic Transformation
Programme, will create a more dynamic and progressive oil and gas industry in
Malaysia. Malaysia companies will be able to partake with local and foreign investors to
invest in new technologies, new products as well as create countless job opportunities
as several of these petrochemical projects take off in the near future.

The Pengerang Integrated Petroleum Complex (PIPC) is one big step in creating
value to the downstream oil and gas value chain in Johor. Sited in Pengerang, it is one
of the largest pieces of investments in the Pengerang district and located on a single
plot measuring about 20,000 acres. The project will house oil refineries, naphtha
crackers, petrochemical plants as well as a liquefied natural gas (LNG) import terminals
and a regasification plant.

An Integrated Petroleum Complex

In PIPC, oil refining facilities will add value to imported crude oil via the Pengerang
Deepwater Petroleum Terminal (PDPT). New high-value, high-demand products and by-
products, such as polymers, pharmaceutical products and plastics, will be created from
the refined feedstock. In creating these products, Malaysia's petrochemical complexes
will be able to generate greater value and investments from its oil and gas sector.
As of January 2013, two major catalytic projects have been committed within the PIPC
area. The RM5 billion Pengerang Deepwater Petroleum Terminal (PDPT) is a
joint-venture between DIALOG Group of Malaysia, Royal Vopak of Netherlands and Johor
State Secretary Incorporated (SSI).
The second mega-project within PIPC is PETRONAS RM53 billion Refinery and
Petrochemical Integrated Development (RAPID) Project while the associated
facilities will involve another RM36 billion in investment. The RAPID project site
preparation is in progress and is expected to be commissioned by 2019. RAPID will have
a 300,000 bbl. per day refining capacity while additional petrochemical plants will
generate value to petroleum products produced in RAPID.

To ensure that various oil and gas projects within PIPC and storage hubs in all 3 key
areas are managed and administered efficiently, a new dedicated Federal Government
agency - Johor Petroleum Development Corporation (JPDC) - was created as subsidiary
to MPRC. JPDC's main role is to coordinate the development of PIPC as well as a one-
stop information centre to assist investors, oil and gas players and local community.

JPDC's Board of Directors is well represented by both the Malaysian Federal

Government and Johor State Government to align government's efforts in making PIPC
a success. One of the crucial roles for the government is to put in infrastructure and
utilities in Pengerang, Kota Tinggi District to cater for the future expansion needs once
PIPC is in place. These include construction of new roads, installing a comprehensive
network of power, telecommunications and water supplies, upgrading roads to
highways to facilitate movements of goods and services and a centralised management
of industrial waste products from the complex.
MHB in EPCC deal for Petronas wellhead platform
Malaysia Marine and Heavy Engineering Holdings Berhad (MHB) has secured
contracts worth RM 527 million ($122.5M) including a contract with Petronas.

The contracts were secured through MHBs wholly owned subsidiary, Malaysia
Marine and Heavy Engineering Sdn Bhd (MMHE).

The first contract entails the engineering, procurement, construction and

commissioning (EPCC) of the WHP topside and jacket,
telecommunication and instrumentation system tie-ins of the new F12
platform and telecommunication and instrumentation system tie-ins
modification of the existing platform.

The F12 facilities are located in the Kumang Cluster gas fields, 180km north-
west of Bintulu, Sarawak in a water depth of 101m. MHB says that the project,
which was awarded by Petronas, is scheduled for delivery within 12 months of
the signing of the Letter Of Award.

Earlier in August, MHB had secured two contracts for the RAPID project from
Toyo Engineering Corporation. The first involves centralised piping
fabrication for the Package-5 steam cracker complex. The primary
fabrication work is expected to end in December 2016 and the overall
completion in April 2017. The subsequent contract is the piping and steel
structure work for a steam cracker complex at the refinery of gas (RoG)
area.

For the fourth contract, MHB, in a consortium with China Huanqiu Contracting
& Engineering Corporation (HQC), has been awarded the electro-mechanical
works for RAPID Package-3. The project is inclusive of pipe rack, flare tower,
mechanical, piping electrical & instrument and insulation. The contract was
awarded by Technicas Reunidas and is expected to start in January 2016 and
complete in July 2017.

MHB has also been awarded another RAPID subcontract work by Punj Lloyd
Sdn Bhd for RAPID Package- 22. The scope of work involves plate structure
prefabrication, fabrication, painting, rolling and blasting. The contract is
expected to start in December 2015 and complete in December 2016.

MHB Managing Director and Chief Executive Officer, Tuan Haji Abu Fitri Abdul
Jalil said, We are doing our level best to continue replenishing our work order.
With these latest contracts, MHB has now secured an estimated RM975 million
worth of projects for the year to-date.
Pipe Class and Pipe Schedule

There are various misunderstandings and misconceptions regarding the

classification of piping and most of these originate primarily because some
engineers simply don't employ their common sense. Some would like to pretend
that there is an almighty, all-powerful agency somewhere that dictates what a
pipe is, will be, and shall be by established and enforced "laws", codes, or
"standards". No such animal exists.

You are being told the wrong information if you are told "pipe class refers to the
maximum internal pressure a pipe can safely sustain". The important point to
bear in mind here is that the pipe itself may not (& in most cases, doesn't) fix
the maximum safe pressure allowable on the ENTIRE piping system involved. In
most cases, the flanges are the weakest point - and this should be the guiding
design factor with regards to allowable pressure in that specific piping
class(ification).

A pipe class is a document (normally prepared by an operating or engineering

company) for use within its confines and which contains the definition of pipe
and all related components that are to be used under a specific pressure,
temperature condition including sometimes the service they are in. A typical
definition contains the material specification, type, rating, and dimensional data.
It serves as a CLASSIFICATION of piping systems and their application within
the process design at hand. A certain pipe schedule is often established for
certain services. This is dictated by the classification, based on the need and the
application.

A pipe schedule to be used and serves as the basic specification for the pipe
thickness and dimensions. You should know that the hoop stress equation is
what determines the pipe thickness, so you shouldn't be asking whether the
pipe thickness determines the allowable working pressure. You SHOULD KNOW
that it does and under what conditions.

Industrial pipe thicknesses follow a set formula, expressed as the "schedule

number" as established by the American Standards Association (ASA) now re-
organized as ANSI - the American National Standards Institute. Eleven schedule
numbers are available for use: 5, 10, 20, 30, 40, 60, 80, 100, 120, 140, & 160.
The most popular schedule, by far, is 40. Schedules 5, 60, 100, 120, & 140 have
rarely, if ever, been employed by myself in over 48 years as a practicing
engineer. The schedule number is defined as the approximate value of the
expression:

Schedule Number = (1,000)(P/S)

Where,
P = the internal working pressure, psig
S = the allowable stress (psi) for the material of construction at the conditions of
use.
For example, the schedule number of ordinary steel pipe having an allowable
stress of 10,000 psi for use at a working pressure of 350 psig would be:

Schedule Number = (1,000)(350/10,000) = 35 (approx. 40)

 1- Hydrotest

Aim of this test is: testing pipes with pressurized water, it doesnt matter if the pipe has
shop weld or field weld. Also hydrotest has to be done, after all welds are
completed (support weld, pipe weld ). Required manhour for hydrotest is depending on:

a) test package
b) pipe size
c) pipe sketch
d) elevation of pipes

Hydro test is simply an integrity test of the pipe spool for example, using water
pressurised to "x" bar before it is then installed in the piping system(conforming to API
requirements).

2- Reinstatement

Means: installing pipes as on drawings and removing test, preparing the line for ready
for turnover.

3- Leak test:

Testing a whole system, in generally with air.

Aim of leak test: monitoring leakages from flanges.
Only pump entrances are blinded.

DIFFERENCE hydro and leak:

hydro: monitoring leak from welds
leak : monitoring leak from flanges

A leak test is carried out after the pipe has been "reinstated" in the system (ie mineral
lube oil) to test for joint leaks at the flange/hardware connection during and pre
commissioning activity and prior to handing back to operation.