Malaysia, China to jointly set up petroleum refinery
Updated: 2006-05-24 16:03
A Malaysian company has signed a memorandum of understanding (MoU) with a
China-based consortium on the establishment of a petroleum refinery in northern
Malaysia, local media reported Wednesday.
With an investment of 6 billion U.S. dollars, the joint venture, to be based
in Perak state, will involve the construction of storage facilities for
liquefied petroleum gas, a petrochemical plant, a condensate refinery, crude oil
refinery and a jetty, the local English newspaper New Straits Times reported.
The MoU was signed between the Malaysian China Petroleum Corporation (MCPC)
and a consortium comprising China International New Energy Petroleum Group Co.
Limited and Empire Global Corporation.
The two-month feasibility study will identify a suitable area of between 600
hectare and 800 hectare in Manjung, near Lumut, for the project, MCPC spokesman
Abdul Rahman Abdullah was quoted as saying.
Lumut has been chosen for its deep sea and long coastline, offering a natural
harbor which will allow huge petroleum containers and tanks to dock at the
jetty, said Abdul Rahman.
The project will be implemented in three phases over five years, with 20
percent of its crude oil supplied by the Malaysian national oil company Petronas
and the remainder from Indonesia and the Middle East, said Abdul Rahman.
The refinery will be handling 10 million tons of crude oil and 5 million tons
of condensate oil annually, said Abdul Rahman.
Meanwhile, Perak Menteri Besar (a title similar to Chief Minister) Tajol
Rosli Ghazali said the state government is excited about the project as the
spin-offs will be huge.
"Besides benefiting the locals, the project will create domestic ventures
into the manufacturing of petroleum and petrochemical products," Tajol