The Refinery and Petrochemicals Integrated Development (RAPID) will be commissioned by the end of 2016 as Malaysia aims to become a world class integrated oil, gas and petrochemical trading hub.

Petronas said the new complex, to be built on 2,500 acres (1,012 hectares) of coastal land in Johor state, will expand its petrochemicals business and further spur the growth of Malaysia's oil and gas downstream sector.

"Looking ahead, RAPID is expected to attract significant investments from international companies within and further down the business value chain," Petronas president and chief executive officer Shamsul Azhar Abbas said.

Shamsul said the project will comprise a crude oil refinery, a naphtha cracker and a petrochemicals and polymer complex.

"In terms of its contributions to nation-building, our downstream activities have helped to broaden and diversify the country's industrial base (and) strengthen the capacity to meet domestic fuel requirement indigenously, which has enhanced the country's security of energy supply," he said.

The RAPID project is currently at the detailed feasibility study stage and a final decision will be made in 2012.

Petronas also said it would build a new liquefied natural gas receiving and re-gasification terminal within the RAPID facility to support the development of RAPID.

Copyright AFP (Agence France-Presse), 2011