Muhibbah-VA Tech wins RM949.6m contract

PETALING JAYA: A consortium of Muhibbah Engineering (M) Bhd and India-listed VA Tech Wabag Ltd has clinched a RM949.6 million Refinery and Petrochemical Integrated Development (Rapid) contract from Petroliam Nasional Bhd (Petronas).

Muhibbah told Bursa Malaysia the contract is for the design competition for the re-feed and engineering, procurement, construction and commissioning of an effluent treatment plant for the Rapid project in Pengerang, Johor.

The contract is to start in the third quarter of 2015 and is expected to be completed by end of 2018.

"The purpose of the integrated effluent treatment plant is to reduce the pollution in the aqueous effluents of the Rapid complex to below the regulatory discharge limits," it said.

The effluent treatment plant will form part of the Rapid complex.

The refinery will have a capacity of 300,000 barrels per day, while the steam cracker's combined annual production is expected to be over three million tonnes a year of ethylene, propylene and C4-C6 olefins products. Products from the refinery and steam cracker will be the feedstock to produce specialty petrochemical products.