Transforming Challenges Into Opportunities by SOGDC

Report
TRANSFORMING
CHALLENGES INTO
OPPORTUNITIES
ABDUL KADIR ABDULLAH
26th May 2014
Quotations from YAB CM
…………………………….In response to the numerous mega
projects embarked by PETRONAS in Sabah amounting
to a staggering billions of ringgit, YAB CM had this to
say at the 2nd SOGCE
“Let me assure you that the State Government is fully
committed to the development of the oil and gas industry
in Sabah. We constantly engage with the Federal
Government to discuss provision of funds for physical
development of infrastructure and industrial facilities, and
with PETRONAS on matters such as gas supply. Sabah will
also continue to work with PETRONAS and the Malaysian
Investment Development Authority (MIDA) to attract
investors to establish oil and gas industrial activities in
Sabah, apart from our own efforts in nurturing local
investments”.
The presentation today is therefore
about……..
A ‘Report Card’ of the Year that Was!
Taming the Challenges
The SOGIP Master Plan –
Forging the Partnerships
What lies Now and AheadCreating the Opportunities
According to Merriem Webster dictionary it
is about a complete or major change in
someone’s appearance, form, etc
?
The project site and the condition of the area where SOGIP was to be
located was described by consultant as….
.
The proposed SOGIP site is approximately 1646
hectares or 4, 065 acres in size.
The area is presently bare of any forest stand.
The existing site condition is flat, overgrown with
shrubs, bushes and other vegetation. A large part of the
area is greatly sandy and some part as swampy.
Mangrove can also be found at the northern section of
the site.
Utility services for water and electricity are not
available in the site.
AND YET…IT WAS UNDER THIS CONDITION THAT PETRONAS
DECIDED TO LOCATE THEIR MEGA AMMONIA AND UREA
PROJECT (SAMUR) WORTH STAGGERING RM4.5 BILLION
SAMUR PROJECT IN PROGRESS
What are these
challenges that needed
to be overcome?
From SOGIP’s
perspective, the
challenges come in
three forms….
Infrastructure
& Utilities
?
Supporting
Facilities

•
•
•
•
•
INFRASTRUCTURE & UTILITIES
Absence of common port facilities in SOGIP
Absence of electricity transmission line (275KVA) to SOGIP
Inadequate water supply for industrial use
Site is yet to be prepared for industrial activities
Absence of dual carriage way to cater for large cargo movement

•
•
•
•
•
•
SUPPORTING FACILITIES
Inadequate housing
Lack of public transport
Absence of railway services
Absence of commercial airport (nearest airport in KK)
Lack of recreational areas (nearest in Labuan and Brunei)
Lack of accommodation for business travellers (nearest in
Lawas)
How Did We
Respond To The
Needs of SAMUR?
 Water Treatment Plant
Mesapol Water Treatment Plant
Total Capacity
by 2014
Capacity
4
59
MLD
MLD
Current demand: 11 MLD
SAMUR requirement : 27 MLD
Kg. Ulau Water Treatment Plant
Capacity
15
MLD
New Water Treatment Plant
Capacity
40
MLD
- To be completed by Q1 2014
- To cater for SAMUR – 27 MLD
NEW WATER
TREATMENT PLANT
DESIGNATED FOR
SOGIP – Scheduled to
be completed June 2014
External Access Road
Internal Infrastructure –Roads, Drainage,
Street Lightings, Landscape, ICT
Approval of 1,000 hectares of
“SEA-LAND” for jetty and port
activities
Jetty for SAMUR
Fund for transmission line from Kimanis
to SOGIP
A Conceptual Maritime Master Plan
OBVIOUSLY, WITH A
MAMMOTH PROJECT LIKE
SOGIP THERE ARE A LOT
MORE TO DO.
BUT THE GREAT JOURNEY
HAS JUST BEGUN!
The greatest challenge
was of course………..
?
PETRONAS
The Early Days
But Today…
PARTNERSHIP IN DEVELOPMENT
THE SABAH STATE GOVERNMENT TOGETHERWITH THE FEDERAL AGENCIES AND
PETRONAS FORMED A SMART PARTNERSHIP TO DEVELOP THE OIL AND GAS
RESOURCES AND LAND IN SIPITANG
SABAH
FEDERAL
AGENCIES
PETRONAS
=
SOGIP
The birth of the
Master Plan
PETRONAS plans to develop natural gas to primary fertilizer and encourage the
development of downstream value added products.
Fertilizer:
agriculture
Natural Gas composition in Peninsular and
Sabah
Composition
 Oversupply of market
 Insufficient gas volume
for world scale plant
Peninsular
Sabah
Methane
79%
91%
Ethane
11%
4%
Caprolactam
Propane
5%
2%
Butane
3%
1%
Ammonium
Sulphate
C5 +
2%
0.1%
-
1.9%
Inert Gas
Ammonia is a more
viable petrochemical
route due to regional
and local market
demand as well as
volume availability
Methanol
Methane
Rich
Natural
Gas
Ammonia
Diammoniu
m
Phosphate
Ammonium
Nitrate
Urea
Ammonium
Chloride
Power
Generation
Fertilizer:
palm/rubb
er
Fertilizer:
cash crops
NPK
Melamine
Artificial
fibre
UF
 Power demand in Sabah
is limited
 100mmscfd = 600 MW
Note : ethane volume is not sufficient to develop ethylene and derivatives
complex
UF – Urea Formaldehyde
Huge
local
demand
INVESTMENT
SCENARIO
Whilst PETRONAS plans to position
Petronas plans to position SOGIP as
Premier Oil and Gas Industrial Park
of Choice for Agro-based
Petrochemical in Asia Pacific
SOGDC plans to invite other
investors to invest in other
industries
SMIs
Base Feedstock
SAMUR
New
Ammonia
Plant
Downstream Urea Derivatives :
i.
NPK
ii. Melamine
iii. Urea formaldehyde resin
Downstream ammonia derivatives :
i.
Ammonium Nitrate
ii. Diammonium Phosphate
iii. Ammonium Chloride
iv. Ammonium Sulphate /Caprolactam
v. CO2 Derivatives i.e. Acetal Resins, Dry
Gas, EOR
Fertilisers chain will bring
approx. net investment value of
RM9.57 Billion and 5,370 direct
and indirect jobs
Oil Tankage/Ship repairs
/Methanol Derivatives
Housing/
Hotels/Shopping
complexes
Reticulation /Gas Distribution
Centralised Utilities Facilities (CUF)
Road and Infrastructure, Port and
Jetties, Storage and Warehouse
Central Water Supply
x
Vs
NEXT SESSION
DR. CHUAH CHEN HENG
SOGIP Petrochemical /
Pharmaceutical Hub
Urea
Ammonia
Natural Gas
Ammonia
Derivatives
Methanol To
Olefin Process
(91% Methane)
Methanol
NPK/Melamine
/ Urea
Formaldehyde
Polyplastics
Chemicals
+
PALM Based
Products
Pharmaceutical
Products
Opportunities from METHANOL
DERIVATIVES
Formaldehyde
Formic Acid
1.Pentaerythrito
2.Trimethylolpropane (TMP
3.1, 4-Butanediol (BDO)
4.Urea Formaldehyde Resin (UF)
5.Phenolic Resin
6.Polyformaldehyde Resin (POM)
7.Melamine-Formaldehyde Resinl
1.Unsaturated Polyester Resin (UPR)
2.Alkyd Resin
3.Polyurethane Resin (PU)
4.1,4 - Butyrolactone (GBL)
5.Tetrahydrofuran (THF)
6.Polyester Polyol
7.Polyvinyl Pyrrolidone (PVP)
8.Polyester Resin
9.Polybutylene Terephthalate (PBT)
Dimethoxymethane
1.Poly(Methyl Methacrylate)
(PMMA)
2.Acrylic Resin
Methyl Methacrylate
Methyl Tertiary Butyl Ether (MTBE)
Methanol
Acetic Acid
N,N-Dimethylacetamide (DMAC)
1.Glyceryl Triacetate
2.Ethyl Acetate (EAC)
3.Butyl Acetate (BAC)
4.Vinyl Acetate Monomer
5.Chloroacetic Acid
6.Isopropyl Acetate (IPAC)
7.Acetic Anhydride
Dimethylformamide (DMF)
Chloromethane
1.Dichloromethane
2.Chloroform
3.Carbon Tetrachloride
4.Methylchlorosilane
Dimethyl Terephthalate (DMT)
1.Polyethylene Terephthalate (PET)
Confidential
1.Polyvinyl Alcohol (PVA)
2.Polyvinyl Acetate
EMPLOYMENT OPPORTUNITIES IN SOGIP
Technical
 Chemical and Process
Engineers
 Mechanical Engineers
 Design Engineers
 Operations Engineers
 IT Analyst
 Electrical Engineers
 SHE Specialists
 Turbo Machinery
Engineers
Business and General
Management
•
•
•
•
•
•
•
•
•
Business Graduate
Law Graduate
Human Resources
team
Medical Specialists
Accounting and
Control Analysts
Corporate Planners
Corporate Affairs
Specialists
Controllers
Asset Management
Team
Skilled Technicians
• Operators
• Instrument and
Electrical Specialists
• Electrical Chargemen
• Mechanical and
Maintenance
Specialists
• Turbo Machinery
Specialist
• IT Specialists
• Logistics Team
• Welding Specialists
(various levels)
• Construction Team
(Supervisors, fitters,
riggers, etc…)
• Design Draftsmen
• Office Administrative
Support Staff
BUSINESS OPPORTUNITIES IN SOGIP
 International Business
participations
 New technologies
 Transfer of Knowledge
 Local business
 New Technologies
 Project Development
 Design and Engineering
 Constructions
 Start-up and Commissioning
 Procurement
 Manufacturing / Production operations
participations
 JV opportunities
 Develop local human
Capitals
 SMEs Opportunities
 Develop local businesses
 Services
 Operations and Maintenance
 Equipment Services
 IT services
 Logistics Services
 Warehousing and Packaging
 Port Services
DEVELOPMENT OPPORTUNITIES IN SUPPORT SERVICES IN
AND AROUND SOGIP AND SIPITANG
 Infrastructures
improvement
 Community Services
 Higher Educations

Improvement in infrastructure

Logistics & transportation

Pan Borneo Highway

Railway link

Air freighting services

Power Supply Service

Water Supply Management and Services

Port Services

Community Services

Heath care for local and new arrivals participating in the
petrochemical industries

New and improve hospitals equipped with modern
facilities to handle emergency cases

Schools
 University
 Research &
Development
 Recreations and
Healthy Entertainments



Institute Of Higher Education



New schools
High grading of the facilities
University
Technical Colleges
Recreation and Healthy Entertainment Developments



Improve esplanade for community interactions
Parks for healthy lifestyle activities
Libraries for inquisitive minds
What lies beneath those challenges are actually
host of business opportunities
ENABLERS
Port
ESTIMATED COST
RM mil
1,530
Utilities : CUF, Electricity Transmission line
900
Waste Management
200
Logistic and Warehouse
100
Water Supply
Internal infrastructure
(Roads, street lighting, drainage, ICT)
Note :
Total Cost
: RM315mil
Approved by UKAS: RM195mil
ESTIMATED EXPENDITURE (mil)
700
315
3,745
Development plan for type of investments in SOGIP
INDUSTRIES
PETROCHEMICAL & FERTILIZERS
▪ MARKISA (Ammonia Plant)
▪ Ammonia Derivatives
▪ Urea Derivatives
▪ Methanol Derivatives
▪ Bio-based Industries
BULK STORAGE & HEAVY INDUSTRIES
▪ Bulk Storage
▪ Bulk Products Distribution Terminal
▪ Oil Refinery
▪ Fabrication Yard
▪ Ship Repair Services
SUPPORTING INDUSTRIES
Transportation
Warehouse (Storage Facilities)
Packaging
Printing
SMI
▪
▪
▪
▪
▪
UTILITIES & INFRASTRUCTURE
▪ Road, Streetlights & Drainage
▪ Electricity , Water & ICT
▪ Centralized Utilities Facility (CUF)
▪ Gas Reticulation
▪ Port & Jetty
▪ Phase 1
▪ Phase 2
▪ Phase 3
▪ Phase 4A
▪ Phase 4B
Phase 1
Phase 2
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Investments in SOGIP
Phase 1: A. Planned investment
1.Fertilizers
• Ammonia Plant
• Ammonia Derivatives
• Urea Derivatives
2.Utilities
•
•
Centralized Utilities Facility (CUF)
Gas Reticulation
3.Bulk Storage
• Bulk Oil Storage
• Bulk Products Distribution
Terminal
4.Other Investment
• Bio-based industries
• Fabrication (shipping, onshore &
offshore structures)
• Refinery
Phase 1: B. Planned Development by SOGIP
1.Infrastructure
• Road & Street Lights
• Drainage
• Port and Jetty
• Telecommunications
Phase 2: Subject to future availability of gas
1.Methanol Derivatives
2.Ammonia Derivatives
3.Urea Derivatives
4.Other heavy industries
Thank You

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