PETRONAS has joined forces with Versalis and signed a heads of agreement (HOA) to co-own, develop, construct and operate elastomer plants in PETRONAS’ proposed Refinery and Petrochemical Integrated Development (RAPID) complex located in Pengerang, Johor.

The elastomer plants will be built within the RMB60bn ($18.8bn) RAPID complex and the companies will use Versalis’ technical know-how and technology license to produce and market the synthetic rubbers.

The proposed RAPID venture is a liquid-based green-field downstream project which is expected to have 300,000 barrels per day refinery to supply, produce a host of refined petroleum products which includes gasoline and diesel that meet the Euro 4 and Euro 5 fuel specifications.

PETRONAS has signed its fourth HOA for RAPID and will sooner begin the engineering activities; the previous HOAs were signed with BASF, ITOCHU, and PTT Global Chemical Public Company for various downstream chemicals.

The company is also pursuing other potential partners and licensors for the various facilities to be developed within RAPID.

Italy-based Versalis is a petrochemical company wholly owned and controlled by Eni, an Italian multinational oil and gas company.

PETRONAS is national oil company of Malaysia.