Johor was chosen as the location of Malaysia's most ambitious down-stream oil and gas project due to its proximity to deepwater port facilities and regional demand centres. This enables easy transportation of finished products to the market. The potential investments into tank terminals in the PDT include an expansion of the existing independent tank farm owned by the Pengerang Independent Terminal, and ongoing construction of the dedicated tank terminals owned by Pengerang Terminals (Two) Sdn Bhd. Other projects include the development of new tank terminals with deepwater jetty facilities capable of handling ultra and very large crude carriers.
The US$7bil investment by Saudi Arabian oil company Saudi Aramco for a 50% stake in a new refinery and a petrochemical facility being developed by Petroliam Nasional Bhd (Petronas) is helping to raise Johor's profile as a world-class downstream oil and gas,hub. New tank farms and deepwater jetties are coming up on stream in stages, adding to an array of trading, bunkering, warehousing and manufacturing projects that dot its southern coastline in the Tanjung Bin, Tanjung Langsat and Pengerang districts facing Singapore.
The Pengerang Integrateg Petroleum Complex (PIPC) is home to Petronas's Refinery and Petrochemical Integrated Development, or Rapid, and Dialog Group Bhd-Vopak's Pengerang Deepwater Terminal. Total investment for the PIPC project is approximately RM97bil (US$27biI), according to the Johor Petroleum Development Corp.