Pengerang Integrated Petroleum Complex Presentation by Johor Petroleum Development Corporation (JPDC)

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1 Pengerang Integrated Petroleum Complex Presentation by Johor Petroleum Development Corporation (JPDC) Johor Petroleum Development Corporation Berhad

2 Introduction Copyright Johor Petroleum Development Corporation Berhad 2016

3 Oil & Gas is one of the 12 National Key Economic Areas (NKEAs) in Malaysia s Economic Transformation Programme (ETP) Oil, Gas & Energy contributes ~17% of Malaysia s GDP Financial Serv & Capital Mkt Tourism Education SUSTAIN Greater KL Wholesale & Retail Continue domestic Oil & Gas production Biz Services Agri culture 12 NKEAs Oil, Gas & Energy Electrical & Electronics GROW Grow in downstream Comms, Content & Infra Palm Oil Health Services DIVERSIFY Build alternative energy capabilities To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 3

Downstream Oil & Gas development in Johor is part of EPP4 and EPP13 under ETP Oil, Gas and Energy (OGE) NKEA EPPs SUSTAIN Continue domestic Oil & Gas production GROW Grow in downstream 4.

4 Downstream Oil & Gas development in Johor is part of EPP4 and EPP13 under ETP Oil, Gas and Energy (OGE) NKEA EPPs SUSTAIN Continue domestic Oil & Gas production GROW Grow in downstream 4. Create a regional oil storage and trading hub 5. Unlock latent gas demand through LNG import 1. Enhanced oil recovery 2. Develop small fields 3. Increase exploration activities Make Malaysia #1 Asian hub for oil field services 6. Increase presence of major international oilfield services players 7. Create regional fabrication champions 8. Encourage JV with world-class companies 13. Increasing petrochemical output DIVERSIFY Build alternative energy capabilities 9. Reduce energy bill through energy efficiency 10. Build up solar power capacity 11. Ensure best practice nuclear deployment 12. Drive industrial growth in Sarawak with big hydro BO 1. Increased oil & gas production abroad 2. Increase volumes in primary logistics 3. Increase marketing of petroleum products 4. Growth driven power demand 5. Growth driven transmission and distribution capacity 6. Improve structure of Malaysia energy supply industry To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 4

EPP4: Malaysia can become a regional oil storage hub with proximity to Singapore, deep water and land availability Demand to build storage capacity for the region Complementing Singapore, the only

5 Billion Tanjung Bin Oil storage Developer : Seaport Worldwide Current storage capacity : 1.

5 EPP4: Malaysia can become a regional oil storage hub with proximity to Singapore, deep water and land availability Demand to build storage capacity for the region Complementing Singapore, the only major independent terminal and storage facility in South East Asia Senai Airport Potential for oil trading business, development of downstream industry (e.g.: refinery, oil based petrochemical complex, LNG regasification terminal) 2020 total new jobs: GNI impact: USD0.5 Billion Tanjung Bin Oil storage Developer : Seaport Worldwide Current storage capacity : 1.15 mil cbm Target Storage Capacity 3 mil cbm Southern Johor Planned Storage Capacity 10 mil cbm Tanjung Langsat Oil storage, marine services, steel, Oilfield Services and Equipment, chemical Developer : Johor Corporation Current storage capacity : 820,000 cbm Target Storage Capacity 2 mil cbm Pengerang Oil storage Developer : Dialog-Vopak-SSI Current storage capacity : 1.3 mil cbm Target Storage Capacity 5 mil cbm Singapore Source : OGE NKEA Lab To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 5

EPP13 in Johor: Petrochemical Complex will be built in Pengerang EPP13:

output Cater to Asia-Pacific region s demand for premium specialty chemicals

7 Billion 20,000 acres (~80 km 2 ) PETRONAS Pengerang Integrated Complex (PIC)

6 EPP13 in Johor: Petrochemical Complex will be built in Pengerang EPP13: Increase in Petrochemical Output Increase volume of Malaysia s petrochemical output Cater to Asia-Pacific region s demand for premium specialty chemicals Pengerang, South East of Johor Pengerang Integrated Petroleum Complex (PIPC) 2020 GNI RM18.3 Billion New Jobs 8,600 Private Investment RM89 Billion Public Investment RM1.7 Billion 20,000 acres (~80 km 2 ) PETRONAS Pengerang Integrated Complex (PIC) DIALOG-Vopak Deepwater Petroleum Terminal Refineries Petrochemical Plants To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 6

7 Overview of Johor Petroleum Development Corporation (JPDC) Copyright Johor Petroleum Development Corporation Berhad 2016

JPDC is a federal Government agency entrusted to plan, coordinate, and promote the development of downstream O&G in Johor

Promotion & Marketing To promote and market Johor downstream oil & gas industry to potential investors 2 Sufficient Fund

Workforce To ensure the availability of industry ready workforce to drive and sustain PIPC s development growth 3

inclusiveness towards an equitable society with more access to economic opportunities in PIPC Johor Bahru Tanjung Langsat

8 JPDC is a federal Government agency entrusted to plan, coordinate, and promote the development of downstream O&G in Johor 1 MANDATES Integrated Planning To plan and develop strategies for the downstream oil and gas development in Johor 4 Promotion & Marketing To promote and market Johor downstream oil & gas industry to potential investors 2 Sufficient Fund To identify and manage funds required for financing the downstream oil and gas development in Johor 5 Industry Ready Workforce To ensure the availability of industry ready workforce to drive and sustain PIPC s development growth 3 Coordination To coordinate and drive the execution of development projects in Johor 6 Local Participation To enhance inclusiveness towards an equitable society with more access to economic opportunities in PIPC Johor Bahru Tanjung Langsat South China Sea 2 Pengerang Tanjung Bin 3 Singapore 1 2 To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 2

JPDC s Board of Directors Co-Chairman Johor Chief Minister Y.A.

Idris Jala FEDERAL STATE INDUSTRY SPECIALISED BODY Secretary General

Tan Sri Dr Mohd Irwan Serigar Abdullah Johor State EXCO Member Y.B.

Md Arif Mahmood Chief Executive, JPDC En.

Bhg. Datuk Allauddin bin Hj. Anuar Johor State Secretary Y.B. Dato Haji Ismail bin Karim Oil Storage & Trading Advisor Y.

Shahrol Azral Ibrahim Halmi Director, UPEN Johor Tuan Haji Salehuddin

9 JPDC s Board of Directors Co-Chairman Johor Chief Minister Y.A.B Dato Mohamed Khaled Nordin Co-Chairman CEO of PEMANDU YBhg Dato Sri Idris Jala FEDERAL STATE INDUSTRY SPECIALISED BODY Secretary General of Treasury, Ministry of Finance Y.Bhg. Tan Sri Dr Mohd Irwan Serigar Abdullah Johor State EXCO Member Y.B. Datuk Ir. Haji Hasni Haji Mohammad Petrochemicals Advisor En. Md Arif Mahmood Chief Executive, JPDC En. Mohd Yazid Ja afar Deputy General (Sectoral), Economic Planning Unit Y.Bhg. Datuk Allauddin bin Hj. Anuar Johor State Secretary Y.B. Dato Haji Ismail bin Karim Oil Storage & Trading Advisor Y.Bhg. Tan Sri Dr. Ngau Boon Keat President / CEO, MPRC Y.Bhg. Datuk Shahrol Azral Ibrahim Halmi Director, UPEN Johor Tuan Haji Salehuddin bin Haji Hassan To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 89

10 Overview of Pengerang Integrated Petroleum Complex (PIPC) Copyright Johor Petroleum Development Corporation Berhad 2016

Pengerang is chosen as the location to build a world class petrochemical hub due to strategic reasons Access to existing major international shipping lanes Middle East Singapore China Leveraging low

11 Pengerang is chosen as the location to build a world class petrochemical hub due to strategic reasons Access to existing major international shipping lanes Middle East Singapore China Leveraging low transportation costs Water depth of 24m enables Very Large Crude Carriers (VLCCs) and Ultra Large Crude Carriers (ULCCs) Safe and sheltered harbour No breakwater required with sufficient seagoing passage for VLCCs and ULCCs Availability of sufficient development land A single candidate plot in excess of 20,000 acres Environmentally friendly Very few Environmentally Sensitive Areas (ESAs) which are easily preserved Proximity to an existing major trading hub Adjacent to Singapore To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 10

12 PIPC in numbers 1 million bbl/day Refining Capacity 1,220 MW Co-generation Plant 11.8 MTA Petrochemical Production 3.5 MTA RGT Capacity 5 million m 3 Oil Storage Capacity 520 MLD Raw water supply To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 6

13 An Integrated Petroleum Complex that will house Storage Facilities, Oil Refineries, Petrochemical Plants, LNG Regasification Facility and Other Supporting Facilities Pengerang Integrated Petroleum Complex (PIPC) Dedicated Jetties Refineries and Naphtha Crackers Medium & Light Industries To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 5

14 and also well connected with existing logistics infrastructure To Senai Airport 100 km MALAYSIA Senai Desaru Expressway Johor Bahru To Johor Port 72 km To Tg Langsat Port 70 km SINGAPORE PIPC To Tg Pelepas Port 132 km To Changi Airport 26 km Jurong Island Future Development : High Speed Rail (Singapore-Johor-Kuala Lumpur) & Rapid Transit System (Singapore-JB) To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 14

A comprehensive PIPC Masterplan to ensure development success Plastics & Fine Chemicals Park Downstream finished product zone Medium & Light Industries Hub Future integrated investor 2 ERC Future

15 A comprehensive PIPC Masterplan to ensure development success Plastics & Fine Chemicals Park Downstream finished product zone Medium & Light Industries Hub Future integrated investor 2 ERC Future integrated investor 3 CUF WMC Future integrated investor 1 Pengerang Integrated Complex (PIC) Pengerang Deepwater Terminal (PDT) Commercial Services Hub Solid Logistics Hub To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 8

In tandem with the commitment from investors, the Government is heavily investing in infrastructure & public amenities for PIPC New Ring Road (15.

16 In tandem with the commitment from investors, the Government is heavily investing in infrastructure & public amenities for PIPC New Ring Road (15.0 km) Stage: Construction Commencement: 18 Mac 2015 Completion: January 2017 NRR New P1 Road (7.0 km) Stage: Tendering Commencement: May 2016 Completion: May 2019 Upgrading of FT92 road (27.0 km) Stage: Construction Commencement: 3 August 2015 Completion: 30 July 2017 P1 New P2 Road (5.6 km) Stage: Tendering Commencement: May 2016 Completion: May 2019 Overall Development Progress as at 29 th August 2016 : 17.81% (vs plan 18.87%) with a total of 25 packages Completed: 7 packages Construction: 13 packages Planning Stage, Design & Procurement: 5 packages R1 R2a P2 FT92 P3 New Sebana Fire Station R2 R3 P4 New P4 Road (7.0 km) Stage: Design Commencement: December 2016 Completion: December 2018 New Punggai Fire Station New Police Station New Schools New Sg. Rengit Fire Station Upgrading of Medical Clinic New P3 Road (4.2 km) Stage: Design Commencement: December 2016 Completion: December 2018 Main Drainage in PIPC Drainage R1 (7.3 km) Stage: Design Commencement: April 2017 Completion: April 2019 Drainage R2 (6.4 km) Stage: Tendering Commencement: April 2016 Completion: April 2019 Drainage R2a (1.5 km) Stage: Tendering Commencement: April 2016 Completion: April 2019 Drainage R3 (4.9 km) Stage: Tendering Commencement: April 2016 Completion: April 2019 To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC

17 Overview of DIALOG Pengerang Deepwater Terminal (PDT) Copyright Johor Petroleum Development Corporation Berhad 2016

DIALOG Pengerang Deepwater Terminal completed its first phase development in December 2014 and the second phase is currently progressing positively Target Storage Capacity 5 mil cbm 500 acres

3 mil cbm + 6 berths = RM2 billion o Independent for storage, blending and distribution of crude oil and petroleum products o Started operation April 2014 o Completed December 2014 Phase 2 : 157

18 DIALOG Pengerang Deepwater Terminal completed its first phase development in December 2014 and the second phase is currently progressing positively Target Storage Capacity 5 mil cbm 500 acres reclaimed land Deepwater (24 meters) jetty facilities capable of handling VLCCs and ULCCs Sheltered harbour Petroleum Terminal Phase 1 : 150 acres + Capacity of 1.3 mil cbm + 6 berths = RM2 billion o Independent for storage, blending and distribution of crude oil and petroleum products o Started operation April 2014 o Completed December 2014 Phase 2 : 157 acres + Capacity of 2.1 mil cbm + 12 berths = RM6.3 billion o Dedicated to PETRONAS RAPID for petroleum and petrochemical storage o Target commissioning Q LNG Terminal o LNG regasification facilities; a regasification terminal (RGT-2) unit and two units (2 x 200,000 cbm) of LNG storage tanks o The RGT-2 will have a capacity of 3.5 mtpa and will provide primary gas supply to the RAPID, Pengerang Cogeneration Plant (PCP) and the Peninsular Gas Utilization (PGU) o Target commissioning Q "To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC

19 DIALOG Pengerang Deepwater Terminal in illustration and progress in pictures LNG Source: DIALOG "To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC

20 DIALOG Pengerang Deepwater Terminal in illustration and progress in pictures SPV 1 (Completed December 2014) Source: DIALOG "To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC

21 DIALOG Pengerang Deepwater Terminal in illustration and progress in pictures PDT Phase 2 (Construction in progress) Source: DIALOG "To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC

22 DIALOG Pengerang Deepwater Terminal in illustration and progress in pictures PDT Phase 2 (Construction in progress) Source: DIALOG "To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC

23 Overview of PETRONAS Pengerang Integrated Complex (PIC) Copyright Johor Petroleum Development Corporation Berhad 2016

Final Investment Decision (FID) for the development of Pengerang Integrated Complex (PIC) was

Refinery (300k bbl/d refining capacity) Naphtha cracker Petrochemical plants Raw water supply

separation unit (ASU) Dedicated storage terminal (SPV2) LNG regasification plant (RGT2)

24 Final Investment Decision (FID) for the development of Pengerang Integrated Complex (PIC) was approved on 3 April 2014 PIC Refinery and Petrochemical Integrated Development (RAPID) Refinery (300k bbl/d refining capacity) Naphtha cracker Petrochemical plants Raw water supply project (PAMER) Power generation plant (PCP) Supported by associated facilities Air separation unit (ASU) Dedicated storage terminal (SPV2) LNG regasification plant (RGT2) Utilities and facilities (UF) "To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC

25 PETRONAS Refinery and Petrochemical Integrated Development (RAPID) Configuration "To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC

26 PETRONAS Pengerang Integrated Complex (PIC) Project Progress Construction of Refineries Source: PETRONAS "To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC

27 PETRONAS Pengerang Integrated Complex (PIC) Project Progress Construction of Steam Cracker Complex Source: PETRONAS "To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC

28 PETRONAS Pengerang Integrated Complex (PIC) Project Progress Construction of Regasification Terminal 2 (RGT-2) Source: PETRONAS "To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC

29 PETRONAS Pengerang Integrated Complex (PIC) Project Progress Construction of Pengerang Co-generation Plant (PCP) Source: PETRONAS "To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC

30 Investment Opportunities by PETRONAS Chemicals Group "To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC

31 .. and with other milestones achieved according to plan, the dream will soon become a reality.. PETRONAS FID 3 April TODAY PETRONAS Cogen Plant 1 st Commercial Operation June 2017 PETRONAS Refinery Ready For Start-Up Q DIALOG Phase 1 operation commenced 12 April 2014 DIALOG Phase 2 & RGT2 construction commenced Q PETRONAS GAS RGT2 operation commences Q DIALOG Phase 2 operation commences Q To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 13

32 Industrial Park Development in PIPC Copyright Johor Petroleum Development Corporation Berhad 2016

33 PIPC Industrial Park Development by : i. Pengerang Industrial Park (PIP) by JCorp Johor Petroleum Development Corporation Berhad 2016

PIP is within PIPC project area and the project consist of : o 1,231 acres of SME s Industrial Park (phase1 : 786

34 Pengerang Industrial Park (PIP) by JCorp The Overview The only large scale industrial park in Pengerang for SME s. Accessibility to RAPID, Highways, Roads and Haulage Road. PIP is within PIPC project area and the project consist of : o 1,231 acres of SME s Industrial Park (phase1 : 786 acres ; phase 2 : 445 acres). o 243 acres of Commercial & Residential development. "To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC

35 Pengerang Industrial Park (PIP) by JCorp Proposed Project Timeline "To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC

36 PIPC Industrial Park Development by : ii. Sg. Rengit Industrial Estate by DIALOG Johor Petroleum Development Corporation Berhad 2016

37 Sg. Rengit Industrial Estate by DIALOG The Overview Sg. Rengit Industrial Estate is within PIPC project area. The industrial park consist of : 333 acres of potential industries that can be accommodated into the industrial park Type of potential industries are : petroleum & chemical storage facilities & warehouses petrochemical manufacturing industries bottling plants and drumming plants open yard storages other oil & gas related manufacturing industries/activities. "To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC

Sg. Rengit Industrial Estate by DIALOG The Development Component Development Component Unit / Plot Size (Acre) Commercial Zone Detached Industry Twin Industry (929 m2) Cluster Industry

38 Sg. Rengit Industrial Estate by DIALOG The Development Component Development Component Unit / Plot Size (Acre) Commercial Zone Detached Industry Twin Industry (929 m2) Cluster Industry (2090 m2) Terrace Industry (279 m2) Future Development N/A "To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC

39 Sg. Rengit Industrial Estate by DIALOG Proposed Project Timeline Environmental Impact Assessment (EIA) Submitted to Department of Environment (DOE) Development Order Submitted to Local Authority Vacant Possession Ready Built Factory For Lease June 2016 Oct 2016 Land clearance and site preparation (1 ½ year) May 2016 July 2016 April 2018 Oct 2019 EIA Approved Development Order Expected To Be Approved "To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC

40 Conclusion Copyright Johor Petroleum Development Corporation Berhad 2016

41 Bringing huge benefits to the country and ample opportunities for businesses.. Helping transform Malaysia into a high income nation Diversifying the country s economy Increasing Malaysia s export capacity Opening up of Oil & Gas trading opportunities Providing the nation s growing energy needs To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 7

PIPC has secured commitment from private investors and strong support from the

. National Project of strategic importance PIPC is already operating!

on track to achieve PIC start-up Q1 2019 Public and private players are

42 PIPC has secured commitment from private investors and strong support from the Government of Malaysia.. National Project of strategic importance PIPC is already operating! Independent storage started April 2014 PIC project is progressing at 39% and is on track to achieve PIC start-up Q Public and private players are committed to realise the dream of an oil and gas hub in Pengerang To transform Johor into a Sustainable, World-Class Downstream Oil & Gas Hub - JPDC 14

43 Main Office Suite 17.03A, Level 17, Menara MSC Cyberport, No. 5, Jalan Bukit Meldrum, Johor Bahru, Johor, Malaysia. Tel : Fax : enquiries@jpdc.gov.my facebook.com/johorpetroleumdevelopmentcorporationberhad Thank you Johor Petroleum Development Corporation Berhad

Kelvin Tan Assoc. Director Performance Management and Delivery Unit (PEMANDU) Prime Minister s Department, Malaysia

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