PROCESS PLANT DESIGN

CDB 3044

ACETYLENE PRODUCTION BY PARTIAL OXIDATION BY HYDROCARBON

FEEDSTOCK

GROUP 2

GROUP MEMBERS MOHAMAD MUKHZIN BIN MOHD RASHID

UMMU ATHIYAH BT MUHD IDRIS LUFTI

MOHAMAD ALIF BIN ROSLAN

BRYAN TEE HWANG CHUNG

NORLIAFARHANA BINTI ABDUL KADIR

18867

19145

19428

19543

19944

LECTURER DR RAJASHEKHAR PENDYALA

SUMBISSION DATE 142016

1 | P a g e

Table of Contents

10 Introduction 3

20 Potential Plant Locations 5

30 Comparison for Each Locations 11

40 Weighted Evaluation 12

50 Conclusion 14

60 Plant Layout 15

70 References 16

2 | P a g e

10 INTRODUCTION

Acetylene (C2H2) is a colorless gas which is used as a fuel or coal and a chemical building block Acetylene is unsaturated in the form of alkyne as its two carbon atoms are bonded together in a triple bond having CCH bond angles of 180o It is unstable in pure form and thus is usually handled as a solution Pure acetylene is odorless but commercial grades usually have a marked odor due to impurities Acetylene is widely used in many chemical industries such as petrochemical industry It is also used in nonchemical applications such as welding of metals and the production of carbon for batteries There are advantages to the use of acetylene in the chemical industry because a variety of valuable products can be produced from acetylene with known technology In the recent years the crude oil deposits dwindle and the high oil price exerts pressure on the naphtha-derived olefins production Those issues renew the interest in the long-dormant subject of acetylene production based on natural gas The use of a natural gas-based acetylene industry is becoming more important to meet the large demand for chemical feedstock in the organic synthetic industry

For this process the production of acetylene is formed by partial oxidation from hydrocarbon feedstock particularly methane The partial oxidation process produces acetylene by burning hydrocarbons with oxygen to provide the energy for the pyrolysis of the residual hydrocarbons Acetylene is a reaction intermediate in the process and the reacting gas should be rapidly quenched at the point of optimum yield of acetylene The process is catalyst free thus the plant lifetime is long The co-production of synthesis gas has enhanced its economic advantage over the polluting calcium carbide route With a projected future where natural gas is a main chemical feedstock the process might become a main route to produce acetylene The energy requirement to convert hydrocarbons to acetylene is massively large and which can be supplied by very high temperature For paraffinic feedstock the heat of formation for a gram atom carbon in acetylene decreases with the increasing length of the chain and it increases in the case of olefinic hydrocarbons The heat of formation is of the order of magnitude required for the dissociation of steam

2CH4 + 174000 Btu C2H2 + 3H2

The formation of acetylene begins at a relatively high temperature in the case of methane occurs around 815oC The temperature required decreases with the increase in the number of carbon atoms of the hydrocarbon feed The reaction below shows the formation of acetylene from natural gas by partial oxidation

CH4 + 2O2 CO2 + 2H2O

2CH4 C2H2 + 3H2 ∆H = + 798 kcals

To meet the increasing demand of the acetylene market improvements in production efficiency and scaling-up of the partial oxidation reactor are needed Thus a strategic plant location and layout must be considered in order to meet the requirements of the desired product

3 | P a g e

Flowsheet of Manufacturing of Acetylene from Natural Gas (Methane)

20 POTENTIAL PLANT LOCATIONS

21 Bintulu Sarawak

Land price According to Bintulu Development Authority (BDA) the land prize in Bintulu is around RM 544 000 per hectare and subject to change from time to time by the State Government of Sarawak

Area available It is estimated around 2023 hectares of land in Bintulu is empty and under the State Government of Sarawak property

Water supplier In Bintulu the water is supply by the private company named LAKU Management Sdn Bhd and it is wholly owned by the State government of Sarawak The company entered into a 25 year concession agreement with the State Government for the production distribution of potable water and collection of water revenue in the 3 Northern urban townships of Miri Bintulu and Limbang in Sarawak

4 | P a g e

Electricity supplier Sarawak Energy Berhad (SEB) is responsible for the generation transmission and distribution of electricity for the Sarawak state in Malaysia It is wholly owned by the State Government of Sarawak Sarawak Energy provides electricity to about 382 000 customers Over the last four years sales of electrical grew at an average of 8 per cent per annum Sarawak Energy has over 4000 employees and is total asset currently stands around RM 40 billion

Methane supplier Shellrsquos Bintulu Gas-to Liquid (GTL) Plant is established by the Royal Dutch Shell as the worldrsquos first Shell Middle Distillate Synthesis plant (Shell MDS) in 1993 The plant has a production capacity of 14770 barrels per day with a total investment of over US$1 billion as of the year 2010 The plant is staffed with 380 people of whom 93 are Malaysians with 80 of the staff coming from Sarawak

Highway Pan-Borneo Highway is a road network on Borneo Island connecting two Malaysian states Sabah and Sarawak with Brunei The length of the entire highway is expected to be about 2083 km for the Malaysian section As of 2002 about 952 (99718 km) of the highway has been completed

Railway As of 2016 there is currently none railway is operated in Sarawak This might be due to the Sarawak land is very large in size and it is very hard to connect the town with railway However the state government has started to plan to build a railway station in Sarawak recently according to the news in Malaysiarsquos newspapers

Airport Bintulu Airport is an airport serving Bintulu a town in the state of Sarawak in Malaysia The airport is located 5 km 23 km by road southwest of the city and although small it is able to handle planes as large as a Boeing 747 In 2008 the airport handled 417918 passengers and 16787 aircraft movements

Port facility Bintulu Port Sdn Bhd (BPSB) is located at the doorstep of one of the most dynamic industrial development zone in Borneo handling oil amp gas related industries timber based and palm oil products Its location also facilitates the feedering and transloading operation between various regional ports for faster shipping transit time to major international ports and export destination BPSB current hinterland covers as far North as Limbang amp Lawas in Sarawak and up until the whole of Brunei DS plus Sabah In the other direction (South ndash East) BPSB coverage extend down to Kuching in Sarawak and further down to Pontianak in Kalimantan Indonesia

Labor supply

5 | P a g e

Table of Contents

10 Introduction 3

20 Potential Plant Locations 5

30 Comparison for Each Locations 11

40 Weighted Evaluation 12

50 Conclusion 14

60 Plant Layout 15

70 References 16

2 | P a g e

10 INTRODUCTION

Acetylene (C2H2) is a colorless gas which is used as a fuel or coal and a chemical building block Acetylene is unsaturated in the form of alkyne as its two carbon atoms are bonded together in a triple bond having CCH bond angles of 180o It is unstable in pure form and thus is usually handled as a solution Pure acetylene is odorless but commercial grades usually have a marked odor due to impurities Acetylene is widely used in many chemical industries such as petrochemical industry It is also used in nonchemical applications such as welding of metals and the production of carbon for batteries There are advantages to the use of acetylene in the chemical industry because a variety of valuable products can be produced from acetylene with known technology In the recent years the crude oil deposits dwindle and the high oil price exerts pressure on the naphtha-derived olefins production Those issues renew the interest in the long-dormant subject of acetylene production based on natural gas The use of a natural gas-based acetylene industry is becoming more important to meet the large demand for chemical feedstock in the organic synthetic industry

For this process the production of acetylene is formed by partial oxidation from hydrocarbon feedstock particularly methane The partial oxidation process produces acetylene by burning hydrocarbons with oxygen to provide the energy for the pyrolysis of the residual hydrocarbons Acetylene is a reaction intermediate in the process and the reacting gas should be rapidly quenched at the point of optimum yield of acetylene The process is catalyst free thus the plant lifetime is long The co-production of synthesis gas has enhanced its economic advantage over the polluting calcium carbide route With a projected future where natural gas is a main chemical feedstock the process might become a main route to produce acetylene The energy requirement to convert hydrocarbons to acetylene is massively large and which can be supplied by very high temperature For paraffinic feedstock the heat of formation for a gram atom carbon in acetylene decreases with the increasing length of the chain and it increases in the case of olefinic hydrocarbons The heat of formation is of the order of magnitude required for the dissociation of steam

2CH4 + 174000 Btu C2H2 + 3H2

The formation of acetylene begins at a relatively high temperature in the case of methane occurs around 815oC The temperature required decreases with the increase in the number of carbon atoms of the hydrocarbon feed The reaction below shows the formation of acetylene from natural gas by partial oxidation

CH4 + 2O2 CO2 + 2H2O

2CH4 C2H2 + 3H2 ∆H = + 798 kcals

To meet the increasing demand of the acetylene market improvements in production efficiency and scaling-up of the partial oxidation reactor are needed Thus a strategic plant location and layout must be considered in order to meet the requirements of the desired product

3 | P a g e

Flowsheet of Manufacturing of Acetylene from Natural Gas (Methane)

20 POTENTIAL PLANT LOCATIONS

21 Bintulu Sarawak

Land price According to Bintulu Development Authority (BDA) the land prize in Bintulu is around RM 544 000 per hectare and subject to change from time to time by the State Government of Sarawak

Area available It is estimated around 2023 hectares of land in Bintulu is empty and under the State Government of Sarawak property

Water supplier In Bintulu the water is supply by the private company named LAKU Management Sdn Bhd and it is wholly owned by the State government of Sarawak The company entered into a 25 year concession agreement with the State Government for the production distribution of potable water and collection of water revenue in the 3 Northern urban townships of Miri Bintulu and Limbang in Sarawak

4 | P a g e

Electricity supplier Sarawak Energy Berhad (SEB) is responsible for the generation transmission and distribution of electricity for the Sarawak state in Malaysia It is wholly owned by the State Government of Sarawak Sarawak Energy provides electricity to about 382 000 customers Over the last four years sales of electrical grew at an average of 8 per cent per annum Sarawak Energy has over 4000 employees and is total asset currently stands around RM 40 billion

Methane supplier Shellrsquos Bintulu Gas-to Liquid (GTL) Plant is established by the Royal Dutch Shell as the worldrsquos first Shell Middle Distillate Synthesis plant (Shell MDS) in 1993 The plant has a production capacity of 14770 barrels per day with a total investment of over US$1 billion as of the year 2010 The plant is staffed with 380 people of whom 93 are Malaysians with 80 of the staff coming from Sarawak

Highway Pan-Borneo Highway is a road network on Borneo Island connecting two Malaysian states Sabah and Sarawak with Brunei The length of the entire highway is expected to be about 2083 km for the Malaysian section As of 2002 about 952 (99718 km) of the highway has been completed

Railway As of 2016 there is currently none railway is operated in Sarawak This might be due to the Sarawak land is very large in size and it is very hard to connect the town with railway However the state government has started to plan to build a railway station in Sarawak recently according to the news in Malaysiarsquos newspapers

Airport Bintulu Airport is an airport serving Bintulu a town in the state of Sarawak in Malaysia The airport is located 5 km 23 km by road southwest of the city and although small it is able to handle planes as large as a Boeing 747 In 2008 the airport handled 417918 passengers and 16787 aircraft movements

Port facility Bintulu Port Sdn Bhd (BPSB) is located at the doorstep of one of the most dynamic industrial development zone in Borneo handling oil amp gas related industries timber based and palm oil products Its location also facilitates the feedering and transloading operation between various regional ports for faster shipping transit time to major international ports and export destination BPSB current hinterland covers as far North as Limbang amp Lawas in Sarawak and up until the whole of Brunei DS plus Sabah In the other direction (South ndash East) BPSB coverage extend down to Kuching in Sarawak and further down to Pontianak in Kalimantan Indonesia

Labor supply

5 | P a g e

10 INTRODUCTION

Acetylene (C2H2) is a colorless gas which is used as a fuel or coal and a chemical building block Acetylene is unsaturated in the form of alkyne as its two carbon atoms are bonded together in a triple bond having CCH bond angles of 180o It is unstable in pure form and thus is usually handled as a solution Pure acetylene is odorless but commercial grades usually have a marked odor due to impurities Acetylene is widely used in many chemical industries such as petrochemical industry It is also used in nonchemical applications such as welding of metals and the production of carbon for batteries There are advantages to the use of acetylene in the chemical industry because a variety of valuable products can be produced from acetylene with known technology In the recent years the crude oil deposits dwindle and the high oil price exerts pressure on the naphtha-derived olefins production Those issues renew the interest in the long-dormant subject of acetylene production based on natural gas The use of a natural gas-based acetylene industry is becoming more important to meet the large demand for chemical feedstock in the organic synthetic industry

For this process the production of acetylene is formed by partial oxidation from hydrocarbon feedstock particularly methane The partial oxidation process produces acetylene by burning hydrocarbons with oxygen to provide the energy for the pyrolysis of the residual hydrocarbons Acetylene is a reaction intermediate in the process and the reacting gas should be rapidly quenched at the point of optimum yield of acetylene The process is catalyst free thus the plant lifetime is long The co-production of synthesis gas has enhanced its economic advantage over the polluting calcium carbide route With a projected future where natural gas is a main chemical feedstock the process might become a main route to produce acetylene The energy requirement to convert hydrocarbons to acetylene is massively large and which can be supplied by very high temperature For paraffinic feedstock the heat of formation for a gram atom carbon in acetylene decreases with the increasing length of the chain and it increases in the case of olefinic hydrocarbons The heat of formation is of the order of magnitude required for the dissociation of steam

2CH4 + 174000 Btu C2H2 + 3H2

The formation of acetylene begins at a relatively high temperature in the case of methane occurs around 815oC The temperature required decreases with the increase in the number of carbon atoms of the hydrocarbon feed The reaction below shows the formation of acetylene from natural gas by partial oxidation

CH4 + 2O2 CO2 + 2H2O

2CH4 C2H2 + 3H2 ∆H = + 798 kcals

To meet the increasing demand of the acetylene market improvements in production efficiency and scaling-up of the partial oxidation reactor are needed Thus a strategic plant location and layout must be considered in order to meet the requirements of the desired product

3 | P a g e

Flowsheet of Manufacturing of Acetylene from Natural Gas (Methane)

20 POTENTIAL PLANT LOCATIONS

21 Bintulu Sarawak

Land price According to Bintulu Development Authority (BDA) the land prize in Bintulu is around RM 544 000 per hectare and subject to change from time to time by the State Government of Sarawak

Area available It is estimated around 2023 hectares of land in Bintulu is empty and under the State Government of Sarawak property

Water supplier In Bintulu the water is supply by the private company named LAKU Management Sdn Bhd and it is wholly owned by the State government of Sarawak The company entered into a 25 year concession agreement with the State Government for the production distribution of potable water and collection of water revenue in the 3 Northern urban townships of Miri Bintulu and Limbang in Sarawak

4 | P a g e

Electricity supplier Sarawak Energy Berhad (SEB) is responsible for the generation transmission and distribution of electricity for the Sarawak state in Malaysia It is wholly owned by the State Government of Sarawak Sarawak Energy provides electricity to about 382 000 customers Over the last four years sales of electrical grew at an average of 8 per cent per annum Sarawak Energy has over 4000 employees and is total asset currently stands around RM 40 billion

Methane supplier Shellrsquos Bintulu Gas-to Liquid (GTL) Plant is established by the Royal Dutch Shell as the worldrsquos first Shell Middle Distillate Synthesis plant (Shell MDS) in 1993 The plant has a production capacity of 14770 barrels per day with a total investment of over US$1 billion as of the year 2010 The plant is staffed with 380 people of whom 93 are Malaysians with 80 of the staff coming from Sarawak

Highway Pan-Borneo Highway is a road network on Borneo Island connecting two Malaysian states Sabah and Sarawak with Brunei The length of the entire highway is expected to be about 2083 km for the Malaysian section As of 2002 about 952 (99718 km) of the highway has been completed

Railway As of 2016 there is currently none railway is operated in Sarawak This might be due to the Sarawak land is very large in size and it is very hard to connect the town with railway However the state government has started to plan to build a railway station in Sarawak recently according to the news in Malaysiarsquos newspapers

Airport Bintulu Airport is an airport serving Bintulu a town in the state of Sarawak in Malaysia The airport is located 5 km 23 km by road southwest of the city and although small it is able to handle planes as large as a Boeing 747 In 2008 the airport handled 417918 passengers and 16787 aircraft movements

Port facility Bintulu Port Sdn Bhd (BPSB) is located at the doorstep of one of the most dynamic industrial development zone in Borneo handling oil amp gas related industries timber based and palm oil products Its location also facilitates the feedering and transloading operation between various regional ports for faster shipping transit time to major international ports and export destination BPSB current hinterland covers as far North as Limbang amp Lawas in Sarawak and up until the whole of Brunei DS plus Sabah In the other direction (South ndash East) BPSB coverage extend down to Kuching in Sarawak and further down to Pontianak in Kalimantan Indonesia

Labor supply

5 | P a g e

Flowsheet of Manufacturing of Acetylene from Natural Gas (Methane)

20 POTENTIAL PLANT LOCATIONS

21 Bintulu Sarawak

Land price According to Bintulu Development Authority (BDA) the land prize in Bintulu is around RM 544 000 per hectare and subject to change from time to time by the State Government of Sarawak

Area available It is estimated around 2023 hectares of land in Bintulu is empty and under the State Government of Sarawak property

Water supplier In Bintulu the water is supply by the private company named LAKU Management Sdn Bhd and it is wholly owned by the State government of Sarawak The company entered into a 25 year concession agreement with the State Government for the production distribution of potable water and collection of water revenue in the 3 Northern urban townships of Miri Bintulu and Limbang in Sarawak

4 | P a g e

Electricity supplier Sarawak Energy Berhad (SEB) is responsible for the generation transmission and distribution of electricity for the Sarawak state in Malaysia It is wholly owned by the State Government of Sarawak Sarawak Energy provides electricity to about 382 000 customers Over the last four years sales of electrical grew at an average of 8 per cent per annum Sarawak Energy has over 4000 employees and is total asset currently stands around RM 40 billion

Methane supplier Shellrsquos Bintulu Gas-to Liquid (GTL) Plant is established by the Royal Dutch Shell as the worldrsquos first Shell Middle Distillate Synthesis plant (Shell MDS) in 1993 The plant has a production capacity of 14770 barrels per day with a total investment of over US$1 billion as of the year 2010 The plant is staffed with 380 people of whom 93 are Malaysians with 80 of the staff coming from Sarawak

Highway Pan-Borneo Highway is a road network on Borneo Island connecting two Malaysian states Sabah and Sarawak with Brunei The length of the entire highway is expected to be about 2083 km for the Malaysian section As of 2002 about 952 (99718 km) of the highway has been completed

Railway As of 2016 there is currently none railway is operated in Sarawak This might be due to the Sarawak land is very large in size and it is very hard to connect the town with railway However the state government has started to plan to build a railway station in Sarawak recently according to the news in Malaysiarsquos newspapers

Airport Bintulu Airport is an airport serving Bintulu a town in the state of Sarawak in Malaysia The airport is located 5 km 23 km by road southwest of the city and although small it is able to handle planes as large as a Boeing 747 In 2008 the airport handled 417918 passengers and 16787 aircraft movements

Port facility Bintulu Port Sdn Bhd (BPSB) is located at the doorstep of one of the most dynamic industrial development zone in Borneo handling oil amp gas related industries timber based and palm oil products Its location also facilitates the feedering and transloading operation between various regional ports for faster shipping transit time to major international ports and export destination BPSB current hinterland covers as far North as Limbang amp Lawas in Sarawak and up until the whole of Brunei DS plus Sabah In the other direction (South ndash East) BPSB coverage extend down to Kuching in Sarawak and further down to Pontianak in Kalimantan Indonesia

Labor supply

5 | P a g e

Electricity supplier Sarawak Energy Berhad (SEB) is responsible for the generation transmission and distribution of electricity for the Sarawak state in Malaysia It is wholly owned by the State Government of Sarawak Sarawak Energy provides electricity to about 382 000 customers Over the last four years sales of electrical grew at an average of 8 per cent per annum Sarawak Energy has over 4000 employees and is total asset currently stands around RM 40 billion

Methane supplier Shellrsquos Bintulu Gas-to Liquid (GTL) Plant is established by the Royal Dutch Shell as the worldrsquos first Shell Middle Distillate Synthesis plant (Shell MDS) in 1993 The plant has a production capacity of 14770 barrels per day with a total investment of over US$1 billion as of the year 2010 The plant is staffed with 380 people of whom 93 are Malaysians with 80 of the staff coming from Sarawak

Highway Pan-Borneo Highway is a road network on Borneo Island connecting two Malaysian states Sabah and Sarawak with Brunei The length of the entire highway is expected to be about 2083 km for the Malaysian section As of 2002 about 952 (99718 km) of the highway has been completed

Railway As of 2016 there is currently none railway is operated in Sarawak This might be due to the Sarawak land is very large in size and it is very hard to connect the town with railway However the state government has started to plan to build a railway station in Sarawak recently according to the news in Malaysiarsquos newspapers

Airport Bintulu Airport is an airport serving Bintulu a town in the state of Sarawak in Malaysia The airport is located 5 km 23 km by road southwest of the city and although small it is able to handle planes as large as a Boeing 747 In 2008 the airport handled 417918 passengers and 16787 aircraft movements

Port facility Bintulu Port Sdn Bhd (BPSB) is located at the doorstep of one of the most dynamic industrial development zone in Borneo handling oil amp gas related industries timber based and palm oil products Its location also facilitates the feedering and transloading operation between various regional ports for faster shipping transit time to major international ports and export destination BPSB current hinterland covers as far North as Limbang amp Lawas in Sarawak and up until the whole of Brunei DS plus Sabah In the other direction (South ndash East) BPSB coverage extend down to Kuching in Sarawak and further down to Pontianak in Kalimantan Indonesia

Labor supply

5 | P a g e

As Bintulu has emerged as a well renounce place with lots of oil and gas production sites it is indeed attracting more civilians to work there People around Malaysia and other parts of the world has come to Bintulu to work in various petroleum based industry there

Waste disposal The garbage dumpsite located in Tanjung Kidurong has collected around 20 tons of domestic and commercial waste per day for the last year This massive amount of waste produced is might be due to Bintulu is developing fast as more people working and staying there

Political economic and strategic consideration Bintulu has achieved a high speed economic growth due to the oil and gas industry Its gross domestic product (GDP) has increase by 7 from year 1995 to 2000

22 Pengerang Johor Bahru Johor

Land price Since PETRONAS RAPID Project has started in Pengerang the land price spike more than 800

within space of two years

Area available Some of the area available which is suitable for industrial need is only for rent Available that is nearest to PETRONAS Rapid Project is up to RM 914 per m2

Water Supplier Konsortium Asia Baru is a joint venture between renowned water supplier in Johor which are

Asia Baru Construction Sdn Bhd and Putra Perdana Construction Sdn Bhd

6 | P a g e

It comprises the construction of an intake pump station at Sungai Sedili Besar dam a terminal reservoir at Bukit Panjang a water impoundment reservoir and booster pump station at Sungai Seluyut as well as 88km of water pipelines

Electricity supplier Pengerang will have co-generation plan (PCP) which comprise of four generation unit to provide

continuous steam supply up to 1480 tons per hour Co-generation plant has higher efficiency than national electricity grid and onsite gas boiler This

allows for approximately 40 when compared to conventional power source Onsite production of power

Methane supplier Technip deal with PETRONAS Refinery and Petrochemical Integrated Development (RAPID)

between RM 244 - RM 487 million) allows production of hydrogen from methane Hence raw methane should be available as well

Highway Senai-Desaru Expressway shortens travelling time by half an hour Three major road works are undergoing construction because of Pengerang Rapid (Eastern

Dispersal Link Johor Bahru Costal Road and Johor Bahru Middle Ring Road)

Railway Stesen Kereta Api Johor Bahru for raw material transport Stations in Kuala Lumpur (Malaysia) and Jurong East (Singapore) expected to cut travel time

from 4-6 hours to 90 minutes

Airport Situated 116 km from Senai International Airport Only 147 km from Changi Airport

Port facility Pengerang Deepwater Terminal project is undergoing with estimated cost of RM 5 billion Sheltered harbor The construction of a deep water jetty facility with water depth of 24 meters would facilitate

handling Very Large Crude Carriers (VLCCs)

Labor supply About 50000 to 70000 specialized and general workers are expected for the Malaysiarsquos

Economic Transformation Program in Pengerang

7 | P a g e

Waste disposal 60 acres Waste Management Treatment near Sungai Rengit for solid waste conversion and

water treatment

Political economic and strategic consideration Under Malaysiarsquos Economic Transformation Program Access to existing major international shipping routes Proximity to major trading hub (Singapore) Few Environmentally Sensitive Area (ESA)

23 Spring Hill City Port Dickson Negeri Sembilan

Land price The industrial land area available for purchase targeted is around 5055 hectares and is priced around RM 32293m2

Area available The area is located on the southern west coast of Peninsular Malaysia in the State of Negeri Sembilan It is located in Springhill City which is in the Port Dickson district and is under a freehold term

Water supplier

8 | P a g e

Meanwhile supply of water is managed and distributed by the state water company Syarikat Air Negeri Sembilan Sdn Bhd (SAINS) The company is able to supply a large amount of water continuously

Electricity supplier In addition Tenaga Nasional Berhad (TNB) is responsible in supplying electricity throughout the Malaysia including the proposed area which is Port Dickson The nearest power plant managed by TNB in the area is the Jimah Power Plant which is allocated just 20 km from Port Dickson

Methane supplier Furthermore raw material needed which is Methane can be obtained from the PETRONAS Penapisan Melaka and LNG Terminal in Melaka The material is imported from the Gas Processing Plant (GPP) in Terengganu in which sales gas or Methane is distributed to customers through the PGU gas transmission network extending through the country As a result there are a lot of chemical and power plants that received their supply of raw materials along the network There are also other oil refineries plants in Port Dickson such as the Shell Refining Company (FOM) Berhad and Esso (Malaysia) Berhad

Highway Apart from that there is a large extension of highway along the west coast of peninsular Malaysia more known as the North-South Expressway (NSE) managed by PLUS Malaysia Berhad The highway also extends to Negeri Sembilan and one can take the exit and go through Lebuhraya Seremban-Port Dickson which connects Port Dickson to the capital city and the NSE highway

Railway Additionally there is an existing railway station nearby which is the Seremban Railway Station It is managed by Keretapi Tanah Melayu Berhad (KTMB) and the railway is also connected to the vast expense of railway network throughout the country and even extending outside the country and into neighbouring countries such as Thailand and Singapore

Airport Besides that Port Dickson is only 90 km or around 45 min from the nearest airport the Kuala Lumpur International Airport (KLIA) in Sepang The airport is capable of handling 35 million passengers and 12 million tons of cargo annually in its current state

Port Facility Moreover Port Dickson also has its own port which is located only around 10km from the proposed land The sea port is authorized by the Shell Refining Company and contains a majority of the minimum facilities required

9 | P a g e

Labor Supply Port Dickson also boost on a large population of labor workers available locally and internationally It is due to Malaysiarsquos Policy that allows industries to recruit foreign work labor to fulfill their companyrsquos needs

Waste Disposal Meanwhile the closest waste disposal service available is provided by Kualiti Alam Sdn Bhd and it is very convenient that its waste management center is located in Port Dickson This can help to reduce on cost as well It is the only waste disposal company in Malaysia to operate an integrated hazardous waste management center and holds license 76 out of 77 listed scheduled waste under the Environmental Quality (Scheduled Wastes) Regulations 2005

Political economic and strategic consideration Lastly in terms of political economic and strategic considerations the government listed it as one of the industrial areas in the country to be given additional incentives under the Investment Incentive Act 1968 Due to the countryrsquos policies foreign investors have a 100 hold over any new projects regardless of their export levels Other than that there are not that many incentives given by the state government regarding the industry apart from the ones implemented by the government

30 COMPARISON FOR EACH LOCATIONS

Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan

Land price RM 5440m2 RM 484m2 RM 32293m2

Area available 202343 hectares 18 hectares 5055 hectaresWater supplier LAKU Management Sdn

BhdKonsortium Asia Baru (KAP)

Syarikat Air Negeri Sembilan Sdn Bhd (SAINS)

Electricity supplier

Sarawak Energy Berhad (SEB)

Pengerang Co-Generation Plant (PCP)

Tenaga Nasional Berhad (TNB)

10 | P a g e

Methane supplier

Shellrsquos Bintulu GTL Plant Technip Reunidas Petronas Gas Berhad (PGB)

Highway - Pan-Borneo Highway- Bintulu-Miri Highway

- Senai-Desaru Expressway- Eastern Dispersal Link (EDL)- Johor Bahru Coastal Road

- Lebuhraya Seremban-Port Dickson- North-South Expressway (NSE) - PLUS Malaysia Berhad

Railway None Stesen Kereta Api Johor Bahru

Seremban Railway Station

Airport - Bintulu Airport - Senai International Airport- Changi International Airport

- Kuala Lumpur International Airport (KLIA)

Port facility Bintulu Port Sdn Bhd Pengerang Deepwater Terminal

Port Dickson

Labor supply Large population Large population Large PopulationWaste disposal Tanjung Kidurong Sungai Rengit Kualiti Alam Sdn BhdPolitical Economic and Strategic consideration

- Vast raw material availability- Speed economic growth due to oil and gas industry- GDP increase by 7 from 1995 to 2000- High technology incentive

- Access to existing major international shipping lanes (Middle East-Singapore-China)- Proximity to major trading hub (Singapore)- Deepwater of 24m (enables VLCCampULCC)- Few Environmentally Sensitive Area (ESA)- Close to Senai International Airport

- Foreign investors hold 100 ownership of all new projects regardless of export levels- Additional incentives under the Investment Incentive Act

40 WEIGHTED EVALUATION

The three proposed sites are evaluated in a table as per below The ranking was done from 1 (poor) 2 (fair) 3 (good) 4 (very good) to 5 (excellent)

Factors 5-4 Marks 3-2 Marks 1-0 MarksLand price Price of land below

than RM 100Price of land morethan RM 100

Price of land more than RM 500

Raw material supplier

Able to obtain largeraw material supply

Able to obtain largeraw material supply

Able to obtain largeraw material supply

11 | P a g e

locally from nearneighbouring countries

locally or from nearneighbouring countries

Water Supplier Able to obtain largewater supply from thesame state

Able to obtain largewater supply from theneighbouring state

Unable to obtainenough water supply

Electricity supplier Able to obtain largeelectricity supply fromthe same state

Able to obtain largeelectricity supply fromneighbouring state

Unable to obtainenough electricitysupply

Port facility lt 10 km proximity toport

lt 30 km proximity toport

gt 30 km proximity toport

Airport Availability ofinternational airport

Availability ofdomestic airport

Unavailability ofairport

Railway Complete network andwell maintainedrailway

Complete network ofrailway

Unavailability ofrailway

Political Economicand StrategicConsideration

Excellent tax benefitsMajor trading hubFew Environmentally Sensitive Area (ESA)

Good tax benefitsSmall trading hub

No tax benefitsNo trading hub

Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan

Land price 5 2 3Area available 4 3 3Water supplier 3 5 3Electricity supplier 4 5 4Methane supplier 5 5 5Highway facilities 4 5 5Railway facilities 0 5 4Airport 3 5 4

12 | P a g e

Port facilities 3 5 3Labor supply 5 5 5Waste disposal 5 5 5Incentives 3 5 4Total 44 55 48Percentage () 733 917 80Ranking 3 1 2

50 CONCLUSION

Based on the weighted evaluation done Pengerang Johor achieved the highest score and thus chosen

as the strategic location for the plant The deductions are rationalized as follows

The land available is limited and most expensive of all three sites however it is located in

Pengerang which is fully optimized for petrochemical production

The location is strategic because it is near major international route and deep water of up to 24

meters depth makes it possible for VLCC (Very Large Crude Carrier)

13 | P a g e

Very near to PETRONAS refinery and petrochemical integrated development project (RAPID)

hence material for methane is also available Apart from that continuous supply of steam is

available because the area uses of co-generation plant to power up It is much more efficient

than using electricity from national grid

Pengerang industry is from under Malaysia Economic Transformation Program which include

tax incentive and support from state and federal government

Pengerang has its own deep water port facility (Pengerang Deep Water Terminal) which is

designed specifically for loading and offloading of large carrier The port facility is a sheltered

harbor which is protected from storm and other risk of danger The port is able to store up to

5million cubic meters of material It has an area of 500 acres

About 50000 to 70000 specialised and general workers are expected for the Malaysiarsquos

Economic Transformation Program in Pengerang

Complete railway network for travelling between Kuala Lumpur and Singapore allows shorter

travelling time In return this ease monitoring from Kuala Lumpur

Few ESA Environmentally Sensitive Area in Pengerang makes it easier to dispose waste and

less restriction is imposed

60 PLANT LOCATION

14 | P a g e

70 REFERENCES

Ananta A amp Barichello R R (2012) Poverty and Global Recession in Southeast Asia Institute of

Southeast Asian Studies Retrieved from

httpsbooksgooglecommybooksid=

zx0BwAAQBAJamppg=PA126amplpg=PA126ampdq=industrial+incentives+in+negeri+sembilanampsourc

e=blampots=1EUc9HmVEHampsig=n_xwrtltNIvHoHlAIdkSXdj7xucamphl=enampsa=Xampredir_esc=yv=

nepageampq=industrial20incentives20in20negeri20sembilanampf=false

Benjamin N (2014 May 22) Johorrsquos Oil and Gas Sector Needs Up to 70000 Skilled Workers The

Star Retrieved from

15 | P a g e

It comprises the construction of an intake pump station at Sungai Sedili Besar dam a terminal reservoir at Bukit Panjang a water impoundment reservoir and booster pump station at Sungai Seluyut as well as 88km of water pipelines

Electricity supplier Pengerang will have co-generation plan (PCP) which comprise of four generation unit to provide

continuous steam supply up to 1480 tons per hour Co-generation plant has higher efficiency than national electricity grid and onsite gas boiler This

allows for approximately 40 when compared to conventional power source Onsite production of power

Methane supplier Technip deal with PETRONAS Refinery and Petrochemical Integrated Development (RAPID)

between RM 244 - RM 487 million) allows production of hydrogen from methane Hence raw methane should be available as well

Highway Senai-Desaru Expressway shortens travelling time by half an hour Three major road works are undergoing construction because of Pengerang Rapid (Eastern

Dispersal Link Johor Bahru Costal Road and Johor Bahru Middle Ring Road)

Railway Stesen Kereta Api Johor Bahru for raw material transport Stations in Kuala Lumpur (Malaysia) and Jurong East (Singapore) expected to cut travel time

from 4-6 hours to 90 minutes

Airport Situated 116 km from Senai International Airport Only 147 km from Changi Airport

Port facility Pengerang Deepwater Terminal project is undergoing with estimated cost of RM 5 billion Sheltered harbor The construction of a deep water jetty facility with water depth of 24 meters would facilitate

handling Very Large Crude Carriers (VLCCs)

Labor supply About 50000 to 70000 specialized and general workers are expected for the Malaysiarsquos

Economic Transformation Program in Pengerang

7 | P a g e

Waste disposal 60 acres Waste Management Treatment near Sungai Rengit for solid waste conversion and

water treatment

Political economic and strategic consideration Under Malaysiarsquos Economic Transformation Program Access to existing major international shipping routes Proximity to major trading hub (Singapore) Few Environmentally Sensitive Area (ESA)

23 Spring Hill City Port Dickson Negeri Sembilan

Land price The industrial land area available for purchase targeted is around 5055 hectares and is priced around RM 32293m2

Area available The area is located on the southern west coast of Peninsular Malaysia in the State of Negeri Sembilan It is located in Springhill City which is in the Port Dickson district and is under a freehold term

Water supplier

8 | P a g e

Meanwhile supply of water is managed and distributed by the state water company Syarikat Air Negeri Sembilan Sdn Bhd (SAINS) The company is able to supply a large amount of water continuously

Electricity supplier In addition Tenaga Nasional Berhad (TNB) is responsible in supplying electricity throughout the Malaysia including the proposed area which is Port Dickson The nearest power plant managed by TNB in the area is the Jimah Power Plant which is allocated just 20 km from Port Dickson

Methane supplier Furthermore raw material needed which is Methane can be obtained from the PETRONAS Penapisan Melaka and LNG Terminal in Melaka The material is imported from the Gas Processing Plant (GPP) in Terengganu in which sales gas or Methane is distributed to customers through the PGU gas transmission network extending through the country As a result there are a lot of chemical and power plants that received their supply of raw materials along the network There are also other oil refineries plants in Port Dickson such as the Shell Refining Company (FOM) Berhad and Esso (Malaysia) Berhad

Highway Apart from that there is a large extension of highway along the west coast of peninsular Malaysia more known as the North-South Expressway (NSE) managed by PLUS Malaysia Berhad The highway also extends to Negeri Sembilan and one can take the exit and go through Lebuhraya Seremban-Port Dickson which connects Port Dickson to the capital city and the NSE highway

Railway Additionally there is an existing railway station nearby which is the Seremban Railway Station It is managed by Keretapi Tanah Melayu Berhad (KTMB) and the railway is also connected to the vast expense of railway network throughout the country and even extending outside the country and into neighbouring countries such as Thailand and Singapore

Airport Besides that Port Dickson is only 90 km or around 45 min from the nearest airport the Kuala Lumpur International Airport (KLIA) in Sepang The airport is capable of handling 35 million passengers and 12 million tons of cargo annually in its current state

Port Facility Moreover Port Dickson also has its own port which is located only around 10km from the proposed land The sea port is authorized by the Shell Refining Company and contains a majority of the minimum facilities required

9 | P a g e

Labor Supply Port Dickson also boost on a large population of labor workers available locally and internationally It is due to Malaysiarsquos Policy that allows industries to recruit foreign work labor to fulfill their companyrsquos needs

Waste Disposal Meanwhile the closest waste disposal service available is provided by Kualiti Alam Sdn Bhd and it is very convenient that its waste management center is located in Port Dickson This can help to reduce on cost as well It is the only waste disposal company in Malaysia to operate an integrated hazardous waste management center and holds license 76 out of 77 listed scheduled waste under the Environmental Quality (Scheduled Wastes) Regulations 2005

Political economic and strategic consideration Lastly in terms of political economic and strategic considerations the government listed it as one of the industrial areas in the country to be given additional incentives under the Investment Incentive Act 1968 Due to the countryrsquos policies foreign investors have a 100 hold over any new projects regardless of their export levels Other than that there are not that many incentives given by the state government regarding the industry apart from the ones implemented by the government

30 COMPARISON FOR EACH LOCATIONS

Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan

Land price RM 5440m2 RM 484m2 RM 32293m2

Area available 202343 hectares 18 hectares 5055 hectaresWater supplier LAKU Management Sdn

BhdKonsortium Asia Baru (KAP)

Syarikat Air Negeri Sembilan Sdn Bhd (SAINS)

Electricity supplier

Sarawak Energy Berhad (SEB)

Pengerang Co-Generation Plant (PCP)

Tenaga Nasional Berhad (TNB)

10 | P a g e

Methane supplier

Shellrsquos Bintulu GTL Plant Technip Reunidas Petronas Gas Berhad (PGB)

Highway - Pan-Borneo Highway- Bintulu-Miri Highway

- Senai-Desaru Expressway- Eastern Dispersal Link (EDL)- Johor Bahru Coastal Road

- Lebuhraya Seremban-Port Dickson- North-South Expressway (NSE) - PLUS Malaysia Berhad

Railway None Stesen Kereta Api Johor Bahru

Seremban Railway Station

Airport - Bintulu Airport - Senai International Airport- Changi International Airport

- Kuala Lumpur International Airport (KLIA)

Port facility Bintulu Port Sdn Bhd Pengerang Deepwater Terminal

Port Dickson

Labor supply Large population Large population Large PopulationWaste disposal Tanjung Kidurong Sungai Rengit Kualiti Alam Sdn BhdPolitical Economic and Strategic consideration

- Vast raw material availability- Speed economic growth due to oil and gas industry- GDP increase by 7 from 1995 to 2000- High technology incentive

- Access to existing major international shipping lanes (Middle East-Singapore-China)- Proximity to major trading hub (Singapore)- Deepwater of 24m (enables VLCCampULCC)- Few Environmentally Sensitive Area (ESA)- Close to Senai International Airport

- Foreign investors hold 100 ownership of all new projects regardless of export levels- Additional incentives under the Investment Incentive Act

40 WEIGHTED EVALUATION

The three proposed sites are evaluated in a table as per below The ranking was done from 1 (poor) 2 (fair) 3 (good) 4 (very good) to 5 (excellent)

Factors 5-4 Marks 3-2 Marks 1-0 MarksLand price Price of land below

than RM 100Price of land morethan RM 100

Price of land more than RM 500

Raw material supplier

Able to obtain largeraw material supply

Able to obtain largeraw material supply

Able to obtain largeraw material supply

11 | P a g e

locally from nearneighbouring countries

locally or from nearneighbouring countries

Water Supplier Able to obtain largewater supply from thesame state

Able to obtain largewater supply from theneighbouring state

Unable to obtainenough water supply

Electricity supplier Able to obtain largeelectricity supply fromthe same state

Able to obtain largeelectricity supply fromneighbouring state

Unable to obtainenough electricitysupply

Port facility lt 10 km proximity toport

lt 30 km proximity toport

gt 30 km proximity toport

Airport Availability ofinternational airport

Availability ofdomestic airport

Unavailability ofairport

Railway Complete network andwell maintainedrailway

Complete network ofrailway

Unavailability ofrailway

Political Economicand StrategicConsideration

Excellent tax benefitsMajor trading hubFew Environmentally Sensitive Area (ESA)

Good tax benefitsSmall trading hub

No tax benefitsNo trading hub

Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan

Land price 5 2 3Area available 4 3 3Water supplier 3 5 3Electricity supplier 4 5 4Methane supplier 5 5 5Highway facilities 4 5 5Railway facilities 0 5 4Airport 3 5 4

12 | P a g e

Port facilities 3 5 3Labor supply 5 5 5Waste disposal 5 5 5Incentives 3 5 4Total 44 55 48Percentage () 733 917 80Ranking 3 1 2

50 CONCLUSION

Based on the weighted evaluation done Pengerang Johor achieved the highest score and thus chosen

as the strategic location for the plant The deductions are rationalized as follows

The land available is limited and most expensive of all three sites however it is located in

Pengerang which is fully optimized for petrochemical production

The location is strategic because it is near major international route and deep water of up to 24

meters depth makes it possible for VLCC (Very Large Crude Carrier)

13 | P a g e

Very near to PETRONAS refinery and petrochemical integrated development project (RAPID)

hence material for methane is also available Apart from that continuous supply of steam is

available because the area uses of co-generation plant to power up It is much more efficient

than using electricity from national grid

Pengerang industry is from under Malaysia Economic Transformation Program which include

tax incentive and support from state and federal government

Pengerang has its own deep water port facility (Pengerang Deep Water Terminal) which is

designed specifically for loading and offloading of large carrier The port facility is a sheltered

harbor which is protected from storm and other risk of danger The port is able to store up to

5million cubic meters of material It has an area of 500 acres

About 50000 to 70000 specialised and general workers are expected for the Malaysiarsquos

Economic Transformation Program in Pengerang

Complete railway network for travelling between Kuala Lumpur and Singapore allows shorter

travelling time In return this ease monitoring from Kuala Lumpur

Few ESA Environmentally Sensitive Area in Pengerang makes it easier to dispose waste and

less restriction is imposed

60 PLANT LOCATION

14 | P a g e

70 REFERENCES

Ananta A amp Barichello R R (2012) Poverty and Global Recession in Southeast Asia Institute of

Southeast Asian Studies Retrieved from

httpsbooksgooglecommybooksid=

zx0BwAAQBAJamppg=PA126amplpg=PA126ampdq=industrial+incentives+in+negeri+sembilanampsourc

e=blampots=1EUc9HmVEHampsig=n_xwrtltNIvHoHlAIdkSXdj7xucamphl=enampsa=Xampredir_esc=yv=

nepageampq=industrial20incentives20in20negeri20sembilanampf=false

Benjamin N (2014 May 22) Johorrsquos Oil and Gas Sector Needs Up to 70000 Skilled Workers The

Star Retrieved from

15 | P a g e

Waste disposal 60 acres Waste Management Treatment near Sungai Rengit for solid waste conversion and

water treatment

Political economic and strategic consideration Under Malaysiarsquos Economic Transformation Program Access to existing major international shipping routes Proximity to major trading hub (Singapore) Few Environmentally Sensitive Area (ESA)

23 Spring Hill City Port Dickson Negeri Sembilan

Land price The industrial land area available for purchase targeted is around 5055 hectares and is priced around RM 32293m2

Area available The area is located on the southern west coast of Peninsular Malaysia in the State of Negeri Sembilan It is located in Springhill City which is in the Port Dickson district and is under a freehold term

Water supplier

8 | P a g e

Meanwhile supply of water is managed and distributed by the state water company Syarikat Air Negeri Sembilan Sdn Bhd (SAINS) The company is able to supply a large amount of water continuously

Electricity supplier In addition Tenaga Nasional Berhad (TNB) is responsible in supplying electricity throughout the Malaysia including the proposed area which is Port Dickson The nearest power plant managed by TNB in the area is the Jimah Power Plant which is allocated just 20 km from Port Dickson

Methane supplier Furthermore raw material needed which is Methane can be obtained from the PETRONAS Penapisan Melaka and LNG Terminal in Melaka The material is imported from the Gas Processing Plant (GPP) in Terengganu in which sales gas or Methane is distributed to customers through the PGU gas transmission network extending through the country As a result there are a lot of chemical and power plants that received their supply of raw materials along the network There are also other oil refineries plants in Port Dickson such as the Shell Refining Company (FOM) Berhad and Esso (Malaysia) Berhad

Highway Apart from that there is a large extension of highway along the west coast of peninsular Malaysia more known as the North-South Expressway (NSE) managed by PLUS Malaysia Berhad The highway also extends to Negeri Sembilan and one can take the exit and go through Lebuhraya Seremban-Port Dickson which connects Port Dickson to the capital city and the NSE highway

Railway Additionally there is an existing railway station nearby which is the Seremban Railway Station It is managed by Keretapi Tanah Melayu Berhad (KTMB) and the railway is also connected to the vast expense of railway network throughout the country and even extending outside the country and into neighbouring countries such as Thailand and Singapore

Airport Besides that Port Dickson is only 90 km or around 45 min from the nearest airport the Kuala Lumpur International Airport (KLIA) in Sepang The airport is capable of handling 35 million passengers and 12 million tons of cargo annually in its current state

Port Facility Moreover Port Dickson also has its own port which is located only around 10km from the proposed land The sea port is authorized by the Shell Refining Company and contains a majority of the minimum facilities required

9 | P a g e

Labor Supply Port Dickson also boost on a large population of labor workers available locally and internationally It is due to Malaysiarsquos Policy that allows industries to recruit foreign work labor to fulfill their companyrsquos needs

Waste Disposal Meanwhile the closest waste disposal service available is provided by Kualiti Alam Sdn Bhd and it is very convenient that its waste management center is located in Port Dickson This can help to reduce on cost as well It is the only waste disposal company in Malaysia to operate an integrated hazardous waste management center and holds license 76 out of 77 listed scheduled waste under the Environmental Quality (Scheduled Wastes) Regulations 2005

Political economic and strategic consideration Lastly in terms of political economic and strategic considerations the government listed it as one of the industrial areas in the country to be given additional incentives under the Investment Incentive Act 1968 Due to the countryrsquos policies foreign investors have a 100 hold over any new projects regardless of their export levels Other than that there are not that many incentives given by the state government regarding the industry apart from the ones implemented by the government

30 COMPARISON FOR EACH LOCATIONS

Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan

Land price RM 5440m2 RM 484m2 RM 32293m2

Area available 202343 hectares 18 hectares 5055 hectaresWater supplier LAKU Management Sdn

BhdKonsortium Asia Baru (KAP)

Syarikat Air Negeri Sembilan Sdn Bhd (SAINS)

Electricity supplier

Sarawak Energy Berhad (SEB)

Pengerang Co-Generation Plant (PCP)

Tenaga Nasional Berhad (TNB)

10 | P a g e

Methane supplier

Shellrsquos Bintulu GTL Plant Technip Reunidas Petronas Gas Berhad (PGB)

Highway - Pan-Borneo Highway- Bintulu-Miri Highway

- Senai-Desaru Expressway- Eastern Dispersal Link (EDL)- Johor Bahru Coastal Road

- Lebuhraya Seremban-Port Dickson- North-South Expressway (NSE) - PLUS Malaysia Berhad

Railway None Stesen Kereta Api Johor Bahru

Seremban Railway Station

Airport - Bintulu Airport - Senai International Airport- Changi International Airport

- Kuala Lumpur International Airport (KLIA)

Port facility Bintulu Port Sdn Bhd Pengerang Deepwater Terminal

Port Dickson

Labor supply Large population Large population Large PopulationWaste disposal Tanjung Kidurong Sungai Rengit Kualiti Alam Sdn BhdPolitical Economic and Strategic consideration

- Vast raw material availability- Speed economic growth due to oil and gas industry- GDP increase by 7 from 1995 to 2000- High technology incentive

- Access to existing major international shipping lanes (Middle East-Singapore-China)- Proximity to major trading hub (Singapore)- Deepwater of 24m (enables VLCCampULCC)- Few Environmentally Sensitive Area (ESA)- Close to Senai International Airport

- Foreign investors hold 100 ownership of all new projects regardless of export levels- Additional incentives under the Investment Incentive Act

40 WEIGHTED EVALUATION

The three proposed sites are evaluated in a table as per below The ranking was done from 1 (poor) 2 (fair) 3 (good) 4 (very good) to 5 (excellent)

Factors 5-4 Marks 3-2 Marks 1-0 MarksLand price Price of land below

than RM 100Price of land morethan RM 100

Price of land more than RM 500

Raw material supplier

Able to obtain largeraw material supply

Able to obtain largeraw material supply

Able to obtain largeraw material supply

11 | P a g e

locally from nearneighbouring countries

locally or from nearneighbouring countries

Water Supplier Able to obtain largewater supply from thesame state

Able to obtain largewater supply from theneighbouring state

Unable to obtainenough water supply

Electricity supplier Able to obtain largeelectricity supply fromthe same state

Able to obtain largeelectricity supply fromneighbouring state

Unable to obtainenough electricitysupply

Port facility lt 10 km proximity toport

lt 30 km proximity toport

gt 30 km proximity toport

Airport Availability ofinternational airport

Availability ofdomestic airport

Unavailability ofairport

Railway Complete network andwell maintainedrailway

Complete network ofrailway

Unavailability ofrailway

Political Economicand StrategicConsideration

Excellent tax benefitsMajor trading hubFew Environmentally Sensitive Area (ESA)

Good tax benefitsSmall trading hub

No tax benefitsNo trading hub

Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan

Land price 5 2 3Area available 4 3 3Water supplier 3 5 3Electricity supplier 4 5 4Methane supplier 5 5 5Highway facilities 4 5 5Railway facilities 0 5 4Airport 3 5 4

12 | P a g e

Port facilities 3 5 3Labor supply 5 5 5Waste disposal 5 5 5Incentives 3 5 4Total 44 55 48Percentage () 733 917 80Ranking 3 1 2

50 CONCLUSION

Based on the weighted evaluation done Pengerang Johor achieved the highest score and thus chosen

as the strategic location for the plant The deductions are rationalized as follows

The land available is limited and most expensive of all three sites however it is located in

Pengerang which is fully optimized for petrochemical production

The location is strategic because it is near major international route and deep water of up to 24

meters depth makes it possible for VLCC (Very Large Crude Carrier)

13 | P a g e

Very near to PETRONAS refinery and petrochemical integrated development project (RAPID)

hence material for methane is also available Apart from that continuous supply of steam is

available because the area uses of co-generation plant to power up It is much more efficient

than using electricity from national grid

Pengerang industry is from under Malaysia Economic Transformation Program which include

tax incentive and support from state and federal government

Pengerang has its own deep water port facility (Pengerang Deep Water Terminal) which is

designed specifically for loading and offloading of large carrier The port facility is a sheltered

harbor which is protected from storm and other risk of danger The port is able to store up to

5million cubic meters of material It has an area of 500 acres

About 50000 to 70000 specialised and general workers are expected for the Malaysiarsquos

Economic Transformation Program in Pengerang

Complete railway network for travelling between Kuala Lumpur and Singapore allows shorter

travelling time In return this ease monitoring from Kuala Lumpur

Few ESA Environmentally Sensitive Area in Pengerang makes it easier to dispose waste and

less restriction is imposed

60 PLANT LOCATION

14 | P a g e

70 REFERENCES

Ananta A amp Barichello R R (2012) Poverty and Global Recession in Southeast Asia Institute of

Southeast Asian Studies Retrieved from

httpsbooksgooglecommybooksid=

zx0BwAAQBAJamppg=PA126amplpg=PA126ampdq=industrial+incentives+in+negeri+sembilanampsourc

e=blampots=1EUc9HmVEHampsig=n_xwrtltNIvHoHlAIdkSXdj7xucamphl=enampsa=Xampredir_esc=yv=

nepageampq=industrial20incentives20in20negeri20sembilanampf=false

Benjamin N (2014 May 22) Johorrsquos Oil and Gas Sector Needs Up to 70000 Skilled Workers The

Star Retrieved from

15 | P a g e

Meanwhile supply of water is managed and distributed by the state water company Syarikat Air Negeri Sembilan Sdn Bhd (SAINS) The company is able to supply a large amount of water continuously

Electricity supplier In addition Tenaga Nasional Berhad (TNB) is responsible in supplying electricity throughout the Malaysia including the proposed area which is Port Dickson The nearest power plant managed by TNB in the area is the Jimah Power Plant which is allocated just 20 km from Port Dickson

Methane supplier Furthermore raw material needed which is Methane can be obtained from the PETRONAS Penapisan Melaka and LNG Terminal in Melaka The material is imported from the Gas Processing Plant (GPP) in Terengganu in which sales gas or Methane is distributed to customers through the PGU gas transmission network extending through the country As a result there are a lot of chemical and power plants that received their supply of raw materials along the network There are also other oil refineries plants in Port Dickson such as the Shell Refining Company (FOM) Berhad and Esso (Malaysia) Berhad

Highway Apart from that there is a large extension of highway along the west coast of peninsular Malaysia more known as the North-South Expressway (NSE) managed by PLUS Malaysia Berhad The highway also extends to Negeri Sembilan and one can take the exit and go through Lebuhraya Seremban-Port Dickson which connects Port Dickson to the capital city and the NSE highway

Railway Additionally there is an existing railway station nearby which is the Seremban Railway Station It is managed by Keretapi Tanah Melayu Berhad (KTMB) and the railway is also connected to the vast expense of railway network throughout the country and even extending outside the country and into neighbouring countries such as Thailand and Singapore

Airport Besides that Port Dickson is only 90 km or around 45 min from the nearest airport the Kuala Lumpur International Airport (KLIA) in Sepang The airport is capable of handling 35 million passengers and 12 million tons of cargo annually in its current state

Port Facility Moreover Port Dickson also has its own port which is located only around 10km from the proposed land The sea port is authorized by the Shell Refining Company and contains a majority of the minimum facilities required

9 | P a g e

Labor Supply Port Dickson also boost on a large population of labor workers available locally and internationally It is due to Malaysiarsquos Policy that allows industries to recruit foreign work labor to fulfill their companyrsquos needs

Waste Disposal Meanwhile the closest waste disposal service available is provided by Kualiti Alam Sdn Bhd and it is very convenient that its waste management center is located in Port Dickson This can help to reduce on cost as well It is the only waste disposal company in Malaysia to operate an integrated hazardous waste management center and holds license 76 out of 77 listed scheduled waste under the Environmental Quality (Scheduled Wastes) Regulations 2005

Political economic and strategic consideration Lastly in terms of political economic and strategic considerations the government listed it as one of the industrial areas in the country to be given additional incentives under the Investment Incentive Act 1968 Due to the countryrsquos policies foreign investors have a 100 hold over any new projects regardless of their export levels Other than that there are not that many incentives given by the state government regarding the industry apart from the ones implemented by the government

30 COMPARISON FOR EACH LOCATIONS

Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan

Land price RM 5440m2 RM 484m2 RM 32293m2

Area available 202343 hectares 18 hectares 5055 hectaresWater supplier LAKU Management Sdn

BhdKonsortium Asia Baru (KAP)

Syarikat Air Negeri Sembilan Sdn Bhd (SAINS)

Electricity supplier

Sarawak Energy Berhad (SEB)

Pengerang Co-Generation Plant (PCP)

Tenaga Nasional Berhad (TNB)

10 | P a g e

Methane supplier

Shellrsquos Bintulu GTL Plant Technip Reunidas Petronas Gas Berhad (PGB)

Highway - Pan-Borneo Highway- Bintulu-Miri Highway

- Senai-Desaru Expressway- Eastern Dispersal Link (EDL)- Johor Bahru Coastal Road

- Lebuhraya Seremban-Port Dickson- North-South Expressway (NSE) - PLUS Malaysia Berhad

Railway None Stesen Kereta Api Johor Bahru

Seremban Railway Station

Airport - Bintulu Airport - Senai International Airport- Changi International Airport

- Kuala Lumpur International Airport (KLIA)

Port facility Bintulu Port Sdn Bhd Pengerang Deepwater Terminal

Port Dickson

Labor supply Large population Large population Large PopulationWaste disposal Tanjung Kidurong Sungai Rengit Kualiti Alam Sdn BhdPolitical Economic and Strategic consideration

- Vast raw material availability- Speed economic growth due to oil and gas industry- GDP increase by 7 from 1995 to 2000- High technology incentive

- Access to existing major international shipping lanes (Middle East-Singapore-China)- Proximity to major trading hub (Singapore)- Deepwater of 24m (enables VLCCampULCC)- Few Environmentally Sensitive Area (ESA)- Close to Senai International Airport

- Foreign investors hold 100 ownership of all new projects regardless of export levels- Additional incentives under the Investment Incentive Act

40 WEIGHTED EVALUATION

The three proposed sites are evaluated in a table as per below The ranking was done from 1 (poor) 2 (fair) 3 (good) 4 (very good) to 5 (excellent)

Factors 5-4 Marks 3-2 Marks 1-0 MarksLand price Price of land below

than RM 100Price of land morethan RM 100

Price of land more than RM 500

Raw material supplier

Able to obtain largeraw material supply

Able to obtain largeraw material supply

Able to obtain largeraw material supply

11 | P a g e

locally from nearneighbouring countries

locally or from nearneighbouring countries

Water Supplier Able to obtain largewater supply from thesame state

Able to obtain largewater supply from theneighbouring state

Unable to obtainenough water supply

Electricity supplier Able to obtain largeelectricity supply fromthe same state

Able to obtain largeelectricity supply fromneighbouring state

Unable to obtainenough electricitysupply

Port facility lt 10 km proximity toport

lt 30 km proximity toport

gt 30 km proximity toport

Airport Availability ofinternational airport

Availability ofdomestic airport

Unavailability ofairport

Railway Complete network andwell maintainedrailway

Complete network ofrailway

Unavailability ofrailway

Political Economicand StrategicConsideration

Excellent tax benefitsMajor trading hubFew Environmentally Sensitive Area (ESA)

Good tax benefitsSmall trading hub

No tax benefitsNo trading hub

Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan

Land price 5 2 3Area available 4 3 3Water supplier 3 5 3Electricity supplier 4 5 4Methane supplier 5 5 5Highway facilities 4 5 5Railway facilities 0 5 4Airport 3 5 4

12 | P a g e

Port facilities 3 5 3Labor supply 5 5 5Waste disposal 5 5 5Incentives 3 5 4Total 44 55 48Percentage () 733 917 80Ranking 3 1 2

50 CONCLUSION

Based on the weighted evaluation done Pengerang Johor achieved the highest score and thus chosen

as the strategic location for the plant The deductions are rationalized as follows

The land available is limited and most expensive of all three sites however it is located in

Pengerang which is fully optimized for petrochemical production

The location is strategic because it is near major international route and deep water of up to 24

meters depth makes it possible for VLCC (Very Large Crude Carrier)

13 | P a g e

Very near to PETRONAS refinery and petrochemical integrated development project (RAPID)

hence material for methane is also available Apart from that continuous supply of steam is

available because the area uses of co-generation plant to power up It is much more efficient

than using electricity from national grid

Pengerang industry is from under Malaysia Economic Transformation Program which include

tax incentive and support from state and federal government

Pengerang has its own deep water port facility (Pengerang Deep Water Terminal) which is

designed specifically for loading and offloading of large carrier The port facility is a sheltered

harbor which is protected from storm and other risk of danger The port is able to store up to

5million cubic meters of material It has an area of 500 acres

About 50000 to 70000 specialised and general workers are expected for the Malaysiarsquos

Economic Transformation Program in Pengerang

Complete railway network for travelling between Kuala Lumpur and Singapore allows shorter

travelling time In return this ease monitoring from Kuala Lumpur

Few ESA Environmentally Sensitive Area in Pengerang makes it easier to dispose waste and

less restriction is imposed

60 PLANT LOCATION

14 | P a g e

70 REFERENCES

Ananta A amp Barichello R R (2012) Poverty and Global Recession in Southeast Asia Institute of

Southeast Asian Studies Retrieved from

httpsbooksgooglecommybooksid=

zx0BwAAQBAJamppg=PA126amplpg=PA126ampdq=industrial+incentives+in+negeri+sembilanampsourc

e=blampots=1EUc9HmVEHampsig=n_xwrtltNIvHoHlAIdkSXdj7xucamphl=enampsa=Xampredir_esc=yv=

nepageampq=industrial20incentives20in20negeri20sembilanampf=false

Benjamin N (2014 May 22) Johorrsquos Oil and Gas Sector Needs Up to 70000 Skilled Workers The

Star Retrieved from

15 | P a g e

Labor Supply Port Dickson also boost on a large population of labor workers available locally and internationally It is due to Malaysiarsquos Policy that allows industries to recruit foreign work labor to fulfill their companyrsquos needs

Waste Disposal Meanwhile the closest waste disposal service available is provided by Kualiti Alam Sdn Bhd and it is very convenient that its waste management center is located in Port Dickson This can help to reduce on cost as well It is the only waste disposal company in Malaysia to operate an integrated hazardous waste management center and holds license 76 out of 77 listed scheduled waste under the Environmental Quality (Scheduled Wastes) Regulations 2005

Political economic and strategic consideration Lastly in terms of political economic and strategic considerations the government listed it as one of the industrial areas in the country to be given additional incentives under the Investment Incentive Act 1968 Due to the countryrsquos policies foreign investors have a 100 hold over any new projects regardless of their export levels Other than that there are not that many incentives given by the state government regarding the industry apart from the ones implemented by the government

30 COMPARISON FOR EACH LOCATIONS

Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan

Land price RM 5440m2 RM 484m2 RM 32293m2

Area available 202343 hectares 18 hectares 5055 hectaresWater supplier LAKU Management Sdn

BhdKonsortium Asia Baru (KAP)

Syarikat Air Negeri Sembilan Sdn Bhd (SAINS)

Electricity supplier

Sarawak Energy Berhad (SEB)

Pengerang Co-Generation Plant (PCP)

Tenaga Nasional Berhad (TNB)

10 | P a g e

Methane supplier

Shellrsquos Bintulu GTL Plant Technip Reunidas Petronas Gas Berhad (PGB)

Highway - Pan-Borneo Highway- Bintulu-Miri Highway

- Senai-Desaru Expressway- Eastern Dispersal Link (EDL)- Johor Bahru Coastal Road

- Lebuhraya Seremban-Port Dickson- North-South Expressway (NSE) - PLUS Malaysia Berhad

Railway None Stesen Kereta Api Johor Bahru

Seremban Railway Station

Airport - Bintulu Airport - Senai International Airport- Changi International Airport

- Kuala Lumpur International Airport (KLIA)

Port facility Bintulu Port Sdn Bhd Pengerang Deepwater Terminal

Port Dickson

Labor supply Large population Large population Large PopulationWaste disposal Tanjung Kidurong Sungai Rengit Kualiti Alam Sdn BhdPolitical Economic and Strategic consideration

- Vast raw material availability- Speed economic growth due to oil and gas industry- GDP increase by 7 from 1995 to 2000- High technology incentive

- Access to existing major international shipping lanes (Middle East-Singapore-China)- Proximity to major trading hub (Singapore)- Deepwater of 24m (enables VLCCampULCC)- Few Environmentally Sensitive Area (ESA)- Close to Senai International Airport

- Foreign investors hold 100 ownership of all new projects regardless of export levels- Additional incentives under the Investment Incentive Act

40 WEIGHTED EVALUATION

The three proposed sites are evaluated in a table as per below The ranking was done from 1 (poor) 2 (fair) 3 (good) 4 (very good) to 5 (excellent)

Factors 5-4 Marks 3-2 Marks 1-0 MarksLand price Price of land below

than RM 100Price of land morethan RM 100

Price of land more than RM 500

Raw material supplier

Able to obtain largeraw material supply

Able to obtain largeraw material supply

Able to obtain largeraw material supply

11 | P a g e

locally from nearneighbouring countries

locally or from nearneighbouring countries

Water Supplier Able to obtain largewater supply from thesame state

Able to obtain largewater supply from theneighbouring state

Unable to obtainenough water supply

Electricity supplier Able to obtain largeelectricity supply fromthe same state

Able to obtain largeelectricity supply fromneighbouring state

Unable to obtainenough electricitysupply

Port facility lt 10 km proximity toport

lt 30 km proximity toport

gt 30 km proximity toport

Airport Availability ofinternational airport

Availability ofdomestic airport

Unavailability ofairport

Railway Complete network andwell maintainedrailway

Complete network ofrailway

Unavailability ofrailway

Political Economicand StrategicConsideration

Excellent tax benefitsMajor trading hubFew Environmentally Sensitive Area (ESA)

Good tax benefitsSmall trading hub

No tax benefitsNo trading hub

Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan

Land price 5 2 3Area available 4 3 3Water supplier 3 5 3Electricity supplier 4 5 4Methane supplier 5 5 5Highway facilities 4 5 5Railway facilities 0 5 4Airport 3 5 4

12 | P a g e

Port facilities 3 5 3Labor supply 5 5 5Waste disposal 5 5 5Incentives 3 5 4Total 44 55 48Percentage () 733 917 80Ranking 3 1 2

50 CONCLUSION

Based on the weighted evaluation done Pengerang Johor achieved the highest score and thus chosen

as the strategic location for the plant The deductions are rationalized as follows

The land available is limited and most expensive of all three sites however it is located in

Pengerang which is fully optimized for petrochemical production

The location is strategic because it is near major international route and deep water of up to 24

meters depth makes it possible for VLCC (Very Large Crude Carrier)

13 | P a g e

Very near to PETRONAS refinery and petrochemical integrated development project (RAPID)

hence material for methane is also available Apart from that continuous supply of steam is

available because the area uses of co-generation plant to power up It is much more efficient

than using electricity from national grid

Pengerang industry is from under Malaysia Economic Transformation Program which include

tax incentive and support from state and federal government

Pengerang has its own deep water port facility (Pengerang Deep Water Terminal) which is

designed specifically for loading and offloading of large carrier The port facility is a sheltered

harbor which is protected from storm and other risk of danger The port is able to store up to

5million cubic meters of material It has an area of 500 acres

About 50000 to 70000 specialised and general workers are expected for the Malaysiarsquos

Economic Transformation Program in Pengerang

Complete railway network for travelling between Kuala Lumpur and Singapore allows shorter

travelling time In return this ease monitoring from Kuala Lumpur

Few ESA Environmentally Sensitive Area in Pengerang makes it easier to dispose waste and

less restriction is imposed

60 PLANT LOCATION

14 | P a g e

70 REFERENCES

Ananta A amp Barichello R R (2012) Poverty and Global Recession in Southeast Asia Institute of

Southeast Asian Studies Retrieved from

httpsbooksgooglecommybooksid=

zx0BwAAQBAJamppg=PA126amplpg=PA126ampdq=industrial+incentives+in+negeri+sembilanampsourc

e=blampots=1EUc9HmVEHampsig=n_xwrtltNIvHoHlAIdkSXdj7xucamphl=enampsa=Xampredir_esc=yv=

nepageampq=industrial20incentives20in20negeri20sembilanampf=false

Benjamin N (2014 May 22) Johorrsquos Oil and Gas Sector Needs Up to 70000 Skilled Workers The

Star Retrieved from

15 | P a g e

Methane supplier

Shellrsquos Bintulu GTL Plant Technip Reunidas Petronas Gas Berhad (PGB)

Highway - Pan-Borneo Highway- Bintulu-Miri Highway

- Senai-Desaru Expressway- Eastern Dispersal Link (EDL)- Johor Bahru Coastal Road

- Lebuhraya Seremban-Port Dickson- North-South Expressway (NSE) - PLUS Malaysia Berhad

Railway None Stesen Kereta Api Johor Bahru

Seremban Railway Station

Airport - Bintulu Airport - Senai International Airport- Changi International Airport

- Kuala Lumpur International Airport (KLIA)

Port facility Bintulu Port Sdn Bhd Pengerang Deepwater Terminal

Port Dickson

Labor supply Large population Large population Large PopulationWaste disposal Tanjung Kidurong Sungai Rengit Kualiti Alam Sdn BhdPolitical Economic and Strategic consideration

- Vast raw material availability- Speed economic growth due to oil and gas industry- GDP increase by 7 from 1995 to 2000- High technology incentive

- Access to existing major international shipping lanes (Middle East-Singapore-China)- Proximity to major trading hub (Singapore)- Deepwater of 24m (enables VLCCampULCC)- Few Environmentally Sensitive Area (ESA)- Close to Senai International Airport

- Foreign investors hold 100 ownership of all new projects regardless of export levels- Additional incentives under the Investment Incentive Act

40 WEIGHTED EVALUATION

The three proposed sites are evaluated in a table as per below The ranking was done from 1 (poor) 2 (fair) 3 (good) 4 (very good) to 5 (excellent)

Factors 5-4 Marks 3-2 Marks 1-0 MarksLand price Price of land below

than RM 100Price of land morethan RM 100

Price of land more than RM 500

Raw material supplier

Able to obtain largeraw material supply

Able to obtain largeraw material supply

Able to obtain largeraw material supply

11 | P a g e

locally from nearneighbouring countries

locally or from nearneighbouring countries

Water Supplier Able to obtain largewater supply from thesame state

Able to obtain largewater supply from theneighbouring state

Unable to obtainenough water supply

Electricity supplier Able to obtain largeelectricity supply fromthe same state

Able to obtain largeelectricity supply fromneighbouring state

Unable to obtainenough electricitysupply

Port facility lt 10 km proximity toport

lt 30 km proximity toport

gt 30 km proximity toport

Airport Availability ofinternational airport

Availability ofdomestic airport

Unavailability ofairport

Railway Complete network andwell maintainedrailway

Complete network ofrailway

Unavailability ofrailway

Political Economicand StrategicConsideration

Excellent tax benefitsMajor trading hubFew Environmentally Sensitive Area (ESA)

Good tax benefitsSmall trading hub

No tax benefitsNo trading hub

Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan

Land price 5 2 3Area available 4 3 3Water supplier 3 5 3Electricity supplier 4 5 4Methane supplier 5 5 5Highway facilities 4 5 5Railway facilities 0 5 4Airport 3 5 4

12 | P a g e

Port facilities 3 5 3Labor supply 5 5 5Waste disposal 5 5 5Incentives 3 5 4Total 44 55 48Percentage () 733 917 80Ranking 3 1 2

50 CONCLUSION

Based on the weighted evaluation done Pengerang Johor achieved the highest score and thus chosen

as the strategic location for the plant The deductions are rationalized as follows

The land available is limited and most expensive of all three sites however it is located in

Pengerang which is fully optimized for petrochemical production

The location is strategic because it is near major international route and deep water of up to 24

meters depth makes it possible for VLCC (Very Large Crude Carrier)

13 | P a g e

Very near to PETRONAS refinery and petrochemical integrated development project (RAPID)

hence material for methane is also available Apart from that continuous supply of steam is

available because the area uses of co-generation plant to power up It is much more efficient

than using electricity from national grid

Pengerang industry is from under Malaysia Economic Transformation Program which include

tax incentive and support from state and federal government

Pengerang has its own deep water port facility (Pengerang Deep Water Terminal) which is

designed specifically for loading and offloading of large carrier The port facility is a sheltered

harbor which is protected from storm and other risk of danger The port is able to store up to

5million cubic meters of material It has an area of 500 acres

About 50000 to 70000 specialised and general workers are expected for the Malaysiarsquos

Economic Transformation Program in Pengerang

Complete railway network for travelling between Kuala Lumpur and Singapore allows shorter

travelling time In return this ease monitoring from Kuala Lumpur

Few ESA Environmentally Sensitive Area in Pengerang makes it easier to dispose waste and

less restriction is imposed

60 PLANT LOCATION

14 | P a g e

70 REFERENCES

Ananta A amp Barichello R R (2012) Poverty and Global Recession in Southeast Asia Institute of

Southeast Asian Studies Retrieved from

httpsbooksgooglecommybooksid=

zx0BwAAQBAJamppg=PA126amplpg=PA126ampdq=industrial+incentives+in+negeri+sembilanampsourc

e=blampots=1EUc9HmVEHampsig=n_xwrtltNIvHoHlAIdkSXdj7xucamphl=enampsa=Xampredir_esc=yv=

nepageampq=industrial20incentives20in20negeri20sembilanampf=false

Benjamin N (2014 May 22) Johorrsquos Oil and Gas Sector Needs Up to 70000 Skilled Workers The

Star Retrieved from

15 | P a g e

locally from nearneighbouring countries

locally or from nearneighbouring countries

Water Supplier Able to obtain largewater supply from thesame state

Able to obtain largewater supply from theneighbouring state

Unable to obtainenough water supply

Electricity supplier Able to obtain largeelectricity supply fromthe same state

Able to obtain largeelectricity supply fromneighbouring state

Unable to obtainenough electricitysupply

Port facility lt 10 km proximity toport

lt 30 km proximity toport

gt 30 km proximity toport

Airport Availability ofinternational airport

Availability ofdomestic airport

Unavailability ofairport

Railway Complete network andwell maintainedrailway

Complete network ofrailway

Unavailability ofrailway

Political Economicand StrategicConsideration

Excellent tax benefitsMajor trading hubFew Environmentally Sensitive Area (ESA)

Good tax benefitsSmall trading hub

No tax benefitsNo trading hub

Criteria Bintulu Sarawak Pengerang Johor Port Dickson Negeri Sembilan

Land price 5 2 3Area available 4 3 3Water supplier 3 5 3Electricity supplier 4 5 4Methane supplier 5 5 5Highway facilities 4 5 5Railway facilities 0 5 4Airport 3 5 4

12 | P a g e

Port facilities 3 5 3Labor supply 5 5 5Waste disposal 5 5 5Incentives 3 5 4Total 44 55 48Percentage () 733 917 80Ranking 3 1 2

50 CONCLUSION

Based on the weighted evaluation done Pengerang Johor achieved the highest score and thus chosen

as the strategic location for the plant The deductions are rationalized as follows

The land available is limited and most expensive of all three sites however it is located in

Pengerang which is fully optimized for petrochemical production

The location is strategic because it is near major international route and deep water of up to 24

meters depth makes it possible for VLCC (Very Large Crude Carrier)

13 | P a g e

Very near to PETRONAS refinery and petrochemical integrated development project (RAPID)

hence material for methane is also available Apart from that continuous supply of steam is

available because the area uses of co-generation plant to power up It is much more efficient

than using electricity from national grid

Pengerang industry is from under Malaysia Economic Transformation Program which include

tax incentive and support from state and federal government

Pengerang has its own deep water port facility (Pengerang Deep Water Terminal) which is

designed specifically for loading and offloading of large carrier The port facility is a sheltered

harbor which is protected from storm and other risk of danger The port is able to store up to

5million cubic meters of material It has an area of 500 acres

About 50000 to 70000 specialised and general workers are expected for the Malaysiarsquos

Economic Transformation Program in Pengerang

Complete railway network for travelling between Kuala Lumpur and Singapore allows shorter

travelling time In return this ease monitoring from Kuala Lumpur

Few ESA Environmentally Sensitive Area in Pengerang makes it easier to dispose waste and

less restriction is imposed

60 PLANT LOCATION

14 | P a g e

70 REFERENCES

Ananta A amp Barichello R R (2012) Poverty and Global Recession in Southeast Asia Institute of

Southeast Asian Studies Retrieved from

httpsbooksgooglecommybooksid=

zx0BwAAQBAJamppg=PA126amplpg=PA126ampdq=industrial+incentives+in+negeri+sembilanampsourc

e=blampots=1EUc9HmVEHampsig=n_xwrtltNIvHoHlAIdkSXdj7xucamphl=enampsa=Xampredir_esc=yv=

nepageampq=industrial20incentives20in20negeri20sembilanampf=false

Benjamin N (2014 May 22) Johorrsquos Oil and Gas Sector Needs Up to 70000 Skilled Workers The

Star Retrieved from

15 | P a g e

Port facilities 3 5 3Labor supply 5 5 5Waste disposal 5 5 5Incentives 3 5 4Total 44 55 48Percentage () 733 917 80Ranking 3 1 2

50 CONCLUSION

Based on the weighted evaluation done Pengerang Johor achieved the highest score and thus chosen

as the strategic location for the plant The deductions are rationalized as follows

The land available is limited and most expensive of all three sites however it is located in

Pengerang which is fully optimized for petrochemical production

The location is strategic because it is near major international route and deep water of up to 24

meters depth makes it possible for VLCC (Very Large Crude Carrier)

13 | P a g e

Very near to PETRONAS refinery and petrochemical integrated development project (RAPID)

hence material for methane is also available Apart from that continuous supply of steam is

available because the area uses of co-generation plant to power up It is much more efficient

than using electricity from national grid

Pengerang industry is from under Malaysia Economic Transformation Program which include

tax incentive and support from state and federal government

Pengerang has its own deep water port facility (Pengerang Deep Water Terminal) which is

designed specifically for loading and offloading of large carrier The port facility is a sheltered

harbor which is protected from storm and other risk of danger The port is able to store up to

5million cubic meters of material It has an area of 500 acres

About 50000 to 70000 specialised and general workers are expected for the Malaysiarsquos

Economic Transformation Program in Pengerang

Complete railway network for travelling between Kuala Lumpur and Singapore allows shorter

travelling time In return this ease monitoring from Kuala Lumpur

Few ESA Environmentally Sensitive Area in Pengerang makes it easier to dispose waste and

less restriction is imposed

60 PLANT LOCATION

14 | P a g e

70 REFERENCES

Ananta A amp Barichello R R (2012) Poverty and Global Recession in Southeast Asia Institute of

Southeast Asian Studies Retrieved from

httpsbooksgooglecommybooksid=

zx0BwAAQBAJamppg=PA126amplpg=PA126ampdq=industrial+incentives+in+negeri+sembilanampsourc

e=blampots=1EUc9HmVEHampsig=n_xwrtltNIvHoHlAIdkSXdj7xucamphl=enampsa=Xampredir_esc=yv=

nepageampq=industrial20incentives20in20negeri20sembilanampf=false

Benjamin N (2014 May 22) Johorrsquos Oil and Gas Sector Needs Up to 70000 Skilled Workers The

Star Retrieved from

15 | P a g e

Very near to PETRONAS refinery and petrochemical integrated development project (RAPID)

hence material for methane is also available Apart from that continuous supply of steam is

available because the area uses of co-generation plant to power up It is much more efficient

than using electricity from national grid

Pengerang industry is from under Malaysia Economic Transformation Program which include

tax incentive and support from state and federal government

Pengerang has its own deep water port facility (Pengerang Deep Water Terminal) which is

designed specifically for loading and offloading of large carrier The port facility is a sheltered

harbor which is protected from storm and other risk of danger The port is able to store up to

5million cubic meters of material It has an area of 500 acres

About 50000 to 70000 specialised and general workers are expected for the Malaysiarsquos

Economic Transformation Program in Pengerang

Complete railway network for travelling between Kuala Lumpur and Singapore allows shorter

travelling time In return this ease monitoring from Kuala Lumpur

Few ESA Environmentally Sensitive Area in Pengerang makes it easier to dispose waste and

less restriction is imposed

60 PLANT LOCATION

14 | P a g e

70 REFERENCES

Ananta A amp Barichello R R (2012) Poverty and Global Recession in Southeast Asia Institute of

Southeast Asian Studies Retrieved from

httpsbooksgooglecommybooksid=

zx0BwAAQBAJamppg=PA126amplpg=PA126ampdq=industrial+incentives+in+negeri+sembilanampsourc

e=blampots=1EUc9HmVEHampsig=n_xwrtltNIvHoHlAIdkSXdj7xucamphl=enampsa=Xampredir_esc=yv=

nepageampq=industrial20incentives20in20negeri20sembilanampf=false

Benjamin N (2014 May 22) Johorrsquos Oil and Gas Sector Needs Up to 70000 Skilled Workers The

Star Retrieved from

15 | P a g e

70 REFERENCES

Ananta A amp Barichello R R (2012) Poverty and Global Recession in Southeast Asia Institute of

Southeast Asian Studies Retrieved from

httpsbooksgooglecommybooksid=

zx0BwAAQBAJamppg=PA126amplpg=PA126ampdq=industrial+incentives+in+negeri+sembilanampsourc

e=blampots=1EUc9HmVEHampsig=n_xwrtltNIvHoHlAIdkSXdj7xucamphl=enampsa=Xampredir_esc=yv=

nepageampq=industrial20incentives20in20negeri20sembilanampf=false

Benjamin N (2014 May 22) Johorrsquos Oil and Gas Sector Needs Up to 70000 Skilled Workers The

Star Retrieved from

15 | P a g e

httpwwwthestarcommynewscommunity20140522

opportunity-for-youths-johors-oil-and-gas-sector-needs-up-to-70000-skilled-workers

Jabatan Bekalan Air (nd) Senarai Syarikat Air Negeri Retrieved from

httpwwwjbagovmy

indexphpdirektori-jbasenarai-syarikat-air-negeri

Johor Petroleum Development Corporation (2015) Pengerang Integrated Petroleum Project (PIPC)

Retrieved from httpdutchchamsgwp-contentuploads201503Investor-deck-2015pdf

Kualiti Alam (nd) Waste Management Centre Retrieved from httpwwwkualitialam

commycontactus-waste-management-centrephp

Negeri Sembilan Investment Centre (nd) Industrial Current Status on Available Factories for

LeaseSale Retrieved from httpwwwnsiccommyfactoryhtml

Patel N K (nd) Acetylene Retrieved from httpnptelacincourses103106108Lecture207pdf

Pengerang Integrated Petroleum Complex (nd) Retrieved from httpwwwmprcgovmyour

businessespengerang-integrated-petroleum-complex-pipc

PENGERANG Petroleum and Maritime Industrial Park (2012) Strategic Location of Pengerang Johor

Malaysia Retrieved from httppengerangmaritimecommylocationhtml

Petronas RAPID Project Southern Johor Malaysia (nd) Retrieved from httpwwwhydrocarbons-

technologycomprojectspetronas-rapid-project-malaysia

Petronas Signs Contract for Pengerang Raw Water Suply Project (2014 May 2) The Malay

Mail Online Retrieved from

httpwwwthemalaymailonlinecommoneyarticlepetronas

signs contract-for pengerang-raw-water-supply-project

Petronas (2014 November 3) PETRONAS Kicks Off Its Pengerang Co-Generation Power Plant [Press

Release] Retrieved from

httpwwwpetronascommymedia-relationsmedia

releasesPagesarticlePETRONAS- KICKS-OFF-ITS-PENGERANG-CO-GENERATION-POWER

PLANTaspx

16 | P a g e

Port of Port Dickson (Malaysia) (nd) Retrieved from

httpswwwsearatescomportport_dickson_myhtm

Rapid Land Woes (2014 May 23) The Star Retrieved from

httpwwwthestarcommybusinessbusiness- news20140523rapid-land-woes

Tenaga Nasional Berhad (nd) Jimah Retrieved from httpswwwtnbcommytnbfjimahphp

Trotus I T Zimmerman T amp Schuth F (2013) Catalytic Reactions of Acetylene A Feedstock for

The Chemical Industry Revisited Chem Rev 114(3) pp 1761-1782 Retrieved from

httpswwwresearchgatenetpublication258524881_Catalytic_Reactions_of_Acetylene_

A_Feedstock_for_the_Chemical_Industry_Revisited

17 | P a g e