KUWAIT: Saudi Aramco has shelved plans for a multi-billion-dollar refining and petrochemical joint venture with Petronas in Malaysia, industry sources familiar with the matter told Reuters on today.

The Refinery and Petrochemical Integrated Development (RAPID) at Pengerang in Johor was to have had a 300,000-barrel-per-day refinery and petrochemical complex with a chemical output capacity of 7.7 million metric tonnes.

Other facilities at the site, which was to have started operations in the first quarter of 2019, were to have included a liquefied natural gas (LNG) regasification terminal.

The sources did not say why Aramco’s participation on the project had been put on hold. Aramco and Petronas officials could not be reached for immediate comment.

Petronas last year sought proposals for a US$7.2 billion loan for the project, with separate guarantees from the company and Aramco, Thomson Reuters IFR reported in June.

Energy companies have seen their finances squeezed by a two-year slump in global oil prices, prompting many to cut costs.

In early 2016, Petronas said it would cut spending by up to RM50bil over the next four years. — Reuters