PETRONAS executive vice president and chief executive officer, Downstream Business, Datuk Sazali Hamzah (left); together with PETRONAS vice president of Refining, Marketing and Trading, Downstream Business and MRCSB chairman Ahmad Adly Alias (centre); and MRCSB managing director and chief executive officer Ahmad Farid Yacob during the Melaka Energy Park launch to commemorate the company’s pearl jubilee milestone.
MEP continues to drive success through investment in technology, people, and communities
PETRONAS has experienced significant growth over the past 50 years, establishing itself as one of the leading global energy players. Beyond producing and delivering energy and solutions globally, PETRONAS has supported the development of new and existing industries within its supply chain, creating thousands of jobs.
PETRONAS’ global presence now extends to over 100 countries, with major operations in Canada, Brazil, and other parts of Asia.
One of the significant milestones in this journey include the transformation of Malaysian Refining Company Sdn Bhd (MRCSB), a refining site operator with one of the largest capacities in Malaysia.
Through MRCSB, PETRONAS has been able to meet the increasing demands for refined petroleum products for both domestic and international markets.
A leading energy hub
Located in Mukim Sungai Udang, Melaka, MRCSB’s Melaka Refinery Complex was renamed Melaka Energy Park (MEP) to commemorate its 30th anniversary.
MRCSB began its operations in 1994 by processing 75,000 barrels of local sweet crude oil and 25,000 barrels of local sweet condensates per day.
Up until 2010, through progressive strategic investments in technologies and facility upgrades, MEP has boosted a daily production rate up to approximately 300,000 barrels with a wider range of crude qualities refining capability to serve more than 60% of domestic petroleum products demand and to also cater for export market.
The latest edition of Delima Project – installed with the Diesel Hydrotreater Unit No 3 that has the capability to produce Diesel Euro-5.
MEP then began producing premium lubricant base oil, used in the fluid formulation for the eight-time World Constructors’ Championship, Mercedes-AMG PETRONAS Formula One Team.
The park is also equipped with a 175 MW Electricity-Steam Combined Cycle Generation (COGEN) plant, making the site self-reliant and enhancing its overall reliability.
Today, with the completion of Euro 5 Diesel Project (DELIMA) in 2021, MEP has evolved into a key player in the global energy industry, with a focus on providing more efficient as well as cleaner energy.
“We remain committed to enhancing MEP’s capabilities to meet evolving energy demands, both domestically and globally, while catering to various industries including aviation, manufacturing, and consumer markets.
“Through continued investment in technology, human capital, and community development, MEP will play a crucial role in shaping the future of energy, both in Malaysia and beyond,” said MRCSB managing director and chief executive officer Ahmad Farid Yaacob.
Ahmad Farid Yaacob said that MRCSB has gone beyond mere economic activities by prioritising social impact and community engagement.
In providing more efficient energy, MEP has implemented advanced process control and digital solutions to enhance productivity and efficient operations.
This includes smart features to provide real-time data analysis and forecasting capabilities to effectively capture the existing demands for petroleum products.
In addition, MEP’s facilities will undergo further upgrades to meet future demands, reinforcing PETRONAS’ purpose as a progressive energy and solutions partner, enriching lives for a sustainable future.
Investing in human capital
Ahmad Farid said the refinery complex has significantly contributed to the local economy by creating numerous job opportunities for residents, fostering economic growth and stability within the community.
About 25% of MRCSB’s employees are local hires, making MEP one of Melaka’s major employers. MRCSB also allocates approximately 35% of its Graduate Employability Enhancement Scheme (GEES) and internship placements to local graduates.
MRCSB also supports the Technical and Vocational Education and Training (TVET) programme through the Technical Energy Enrichment Programme (TEP) at INSTEP, providing opportunities for local students to develop into skilled technicians.
In addition, MRCSB collaborates with the state education department and PETRONAS subsidiaries to promote STEM (Science, Technology, Engineering, and Mathematics) education, particularly for less-privileged students.
Commitment to social impact and environmental stewardship
Beyond creating value from existing business as well as growing new businesses, MEP is committed to creating positive impact for the community through PETRONAS’ social impact pillars—Uplifting Lives, Powering Knowledge, and Planting Tomorrow.
According to Ahmad Farid, MEP has been working closely with local authorities and communities to support Melaka’s socio-economic development for the past three decades through numerous environmental and social impact programmes.
These include education, beach cleanups, tree planting, and turtle hatchling releases, all aimed at enhancing environmental resilience and biodiversity.
“The refinery’s strategic location near the tourist hotspots of Tanjung Kling and Pantai Puteri underscores its responsibility to ensure proper wastewater treatment, thus mitigating environmental risks,” he added.
In supporting both local businesses and vulnerable groups, MEP partners with local government agencies to distribute food packages to less-privileged communities during major festivals, such as Chinese New Year, Hari Raya, and Deepavali.
These packages are supplied by B40 entrepreneurs under one of PETRONAS’ social impact programmes, “Memampankan Ekonomi Asas Rakyat” (MEKAR).
MEP believes that social progress should be inclusive, ensuring that everyone can enjoy a better quality of life.
The company is committed to making a positive and sustainable impact on the well-being of society in the areas where they operate, achieved through positive alliances and collaboration with local authorities and communities.
