Malaysian oil company Hengyuan Refining Co. Bhd. (HRC), a unit of Chinese rival Shandong Hengyuan Petrochemical Co. Ltd., plans to invest $66.4 million to construct a hydrogen facility as part of a hydrogen generation project.
The new facility will produce hydrogen to power Port Dickson refinery’s hydrodesulfurization unit as well as other extractive desulfurization hydrotreating processes at the site.
HRC said that the new facility is part of its ongoing capital expenditure program to enhance production processes to fulfil domestic demand while upgrading to new product-quality specifications.
The hydrogen generation project, created for the production of cleaner fuels, is scheduled for startup in September 2020.