Pengerang is a mukim in Kota Tinggi District, Johor, Malaysia. Pengerang is also known as a small custom cum immigration post. It has a road leading to Sungai Rengit - a town in Pengerang. Pengerang has many natural resources, sea life and unique landforms. It is well known as a destination for seafood and has a beautiful seacoast. There are many religious landmarks such as temples. Pengerang coastal batteries (a fort), located nearby Tanjung Pengelih, are a heritage trail of World War II. The battery was constructed at the mouth of Sungai Santi, overlooking the sea towards Singapore and was abandoned after the war. The battery, located at Tanjung Pengelih, is said to be the biggest defence fort outside the United Kingdom. It sits on a 610ha plot of land and once had barracks and a hospital. Pengerang battery is a lost fortress located in Johor State in Malaysia. Overlooking the sea towards Singapore, it is located close to a Malaysian military camp, standing on the top of a little hill covered by jungle.
The Johor State Government has picked Pengerang for a catalyst project for rural transformation program. Johor’s Chief Minister Datuk Mohamed Khaled Nordin said the area has seen steady development over the last few years as investments poured in because of the Pengerang Integrated Petroleum Complex. “When Pengerang was chosen as the location for an oil and gas hub it was not only to give a positive impact to the country but to also transform rural areas where the people will reap the rewards of development,” he said at a press conference after presenting 100 agriculture land grants at Taman Bayu Damai, Pengerang on 23 February 2015.
Downstream Oil and Gas Development in Pengerang
Pengerang is well known for Malaysia's mega project named Pengerang Integrated Petroleum Complex (PIPC) which is sited in the area. The project was announced in 2011 and Pengerang was chosen for Malaysia's national project due to its strategic location. It offers access to existing major international shipping lanes (Middle East – Singapore – China) and proximity to an existing major trading hub (adjacent to Singapore). The Pengerang Integrated Petroleum Complex (PIPC) is one big step in creating value to the downstream oil and gas value chain in Johor and Malaysia. Sited in Pengerang, it is a national mega project located on a single plot measuring of 20,000 acres. Upon completion, the project will house oil refineries, naphtha crackers, petrochemical plants as well as a liquefied natural gas (LNG) import terminals and a regasification plant.
The component of this mammoth project was first initiated with the development of the Pengerang Deepwater Terminal or PDT, a joint-venture between Dialog Group, Royal Vopak of The Netherlands and the State of Johor. Serving as a centralised storage facilities for trading, refining and petrochemical industry, the Deepwater Terminal is envisioned to have a storage capacity of 5 million cubic meters. The USD 3 Billion facility includes an independent terminal for trading, a dedicated industrial terminal for consumption of investors within PIPC and a Liquefied Natural Gas Terminal. The construction of a deepwater jetty facility with natural water depth would enable the berthing of both ultra large crude carriers and very large crude carriers. PDT received its first shipment of oil in the first quarter of 2014 and continues to cater to the growing demand for its services.
The other component of PIPC is the Petronas’ Pengerang Integrated Complex (PIC) which is PETRONAS’ largest downstream investment in a single location to date, the development includes the USD 16 billion Refinery and Petrochemical Integrated Development Project or RAPID. This also involves the USD 11 billion associated facilities consisting of Air Separation Unit, Raw Water Supply, Cogeneration Plant, Regasification Terminal, Deepwater Terminal and Utilities and Facilities. Upon its completion in 2019, PIC will have a refining capacity of 300,000 barrels per day with petrochemical plants yielding an estimated production capacity of 3.6 million tonnes per annum of petrochemical products. The development of PIPC which received full support from the both state government and federal government will also benefit the local community by creating more access to economic opportunities other than the provision of public infrastructure and a complete infrastructure in Pengerang, Johor, PIPC also will create a total of 8,600 jobs in the operational phase by year 2020.
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