Hengyuan: Capex of RM700m mainly for 2 core projects

KUALA LUMPUR: Hengyuan Refining Company Bhd has allotted RM700 million for capital expenditure (capex) for the next one to two years, which will be mainly used to finance two cornerstone projects, namely the Euro4M Mogas and Atlas II.
The high capex allocation is significant for the company as it goes into its next phase of growth with the implementation of proven and advanced refinery technologies as well as improve operational efficiencies to maximise refinery margins.
The Euro4M Mogas project took a longer-than-expected duration due to the fabrication of its main equipment, and is now scheduled to be completed in the fourth quarter of 2019.
“While it’s unfortunate to experience a longer timeframe for the Euro4M Mogas project, but as a company, we strive for operational excellence in a safe environment, and believe that this highly technical project must follow its due course. The adjusted timeline would not adversely impact Hengyuan’s commitment in meeting product delivery commitments and we would like assure our customers that there would be no disruption of supply,” said its chairman Wang YouDe in a statement.
The Atlas II is slated for completion during the refinery-wide 2018 Major Turnaround (MTA) exercise due to begin in August 2018. Once completed, the integrated complex will be able to produce 1.15 million tonnes per annum.
In addition to the two projects, Hengyuan will be allott resources for the installation of facilities which is in compliance with future regulatory requirements.
These facilities known as Clean Air Regulation (CAR) and Euro 5 gas oil, will be installed during the scheduled shutdown in the third quarter of 2018, to avoid future refinery shutdowns.