Hengyuan commits USD 66.4 million CAPEX to produce cleaner fuels by 2020
Hengyuan commits USD 66.4 million CAPEX to produce cleaner fuels by 2020
- Investment to deliver a Hydrogen Manufacturing Unit to enable compliance to new diesel specifications.
Port Dickson, 16th January 2019 - Regional major oil-refining company Hengyuan Refining Company Berhad (Hengyuan or “the Company”; Bloomberg: HYR:MK; Reuters: HENY.KL) is allocating USD 66.4 million (approximately RM 272 million) in capital expenditure (CAPEX) to develop and construct a Hydrogen Manufacturing unit (HMU) under the Hydrogen Generation (H2GEN) project.
The primary objective of the H2GEN Project is to supply the refinery with 30 tonnes/day of hydrogen for hydro-treating processes to reduce the sulphur content in the company’s petrol and diesel products.
The project is expected to start up in September 2020, mainly to enable full compliance with the new Malaysian clean diesel specifications.
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Wang YouDe, Chairman, Hengyuan Refining Company Berhad: "Hengyuan refinery currently relies solely on our platformer unit for the manufacturing of hydrogen. The installation of the HMU is crucial to expand our hydrogen-production capacity and also provides a second source of hydrogen, thus improving our resilience and reliability as a key supplier of products to the Malaysian market. The H2GEN project is part of our ongoing CAPEX programme to enhance our production processes to fulfil domestic demand while upgrading to the new product quality specifications. From a broader perspective, we believe that improving the reliability of our refinery and ensuring the sustainability of our refinery’s operations for the long-term will enable Hengyuan to further enhance and sustain profitability in the future." |
About Hengyuan Refining Company Berhad
Hengyuan Refining Company Berhad (HRC), formerly known as Shell Refining Company (Federation of Malaya) Berhad (SRC), was incorporated in Malaysia on 19 September 1960. The company was listed on the Main Board of the then Kuala Lumpur Stock Exchange (now known as the Main Market of Bursa Securities) on 29 October 1962.
On 22 December 2016, Malaysia Hengyuan International Limited (MHIL) acquired 51.0% equity stake in SRC from Shell Overseas Holdings Limited for USD66.3 million. MHIL is wholly-owned by Heng Yuan Holdings Limited, which in turn, is a wholly-owned subsidiary of Shandong Hengyuan Petrochemical Company Limited. Hengyuan Refining Company Berhad manages and operates a refinery in Port Dickson, Negeri Sembilan with licensed production capacity of 156,000-bpd. The refinery is involved in the refining and manufacturing of petroleum products, and provides employment for more than 500 individuals comprising of staff and contractors
Issued for and on behalf of HENGYUAN REFINING COMPANY BERHAD by Aquilas Advisory (Malaysia) Sdn Bhd. For media enquiries, please contact:
Ms. Fong Kai Pieng
Kai-Pieng.Fong@hrc.com.my
T: +6017-398 3358
Ms. Julia Pong
julia@aquilas.com.my
T: +603- 27111391 / +6012-3909 258
Mr. Hanif Kamarudin
hanif@aquilas.com.my
T: +603- 27111391 / +6012-3909 258