Changes made to the oil pipeline project include the project promoter, the name of the project and the original route, sources say
Several changes have been made to an ambitious US$7 billion (RM24.6 billion) oil pipeline project planned across the northern part of Peninsular Malaysia, including to the project promoter itself.
The new project promoter now has a foreign partner and the two parties are expected to sign an agreement within this week, sources told Business Times without providing details.
It was learnt that apart from the promoter, the name of the project itself has been changed.
"Except for one, the other shareholders in the new promoter are not from the original developer of the project," the source said. No reasons were provided for the changes.
The source added that the original pipeline route has also been changed. Originally planned to be laid between Yan in Kedah and Bachok in Kelantan, the pipeline will most likely be between Yan and Tumpat, Kelantan.
When the pipeline project was first launched in May 2007, the then project promoter, Trans-Peninsula Petroleum Sdn Bhd (TPP) entered into a deal with Indonesia's PT Tripatra to develop the project. TPP also signed an agreement with Ranhill Bhd, with the latter to construct the pipeline.
Since its launch, the project has not been received with much enthusiasm and there were doubts if it will ever take off because of its high cost and the weak economic environment.
Until today, no physical development has taken place at any of the project sites.
Last month, Kedah Menteri Besar Datuk Seri Azizan Abdul Razak said that the federal government is reviewing the crude oil pipeline project crossing the northern states of Peninsular Malaysia
Based on the original plan, the trans-peninsula pipeline will traverse Perak, Kedah and Kelantan.
On both ends of Yan in Kedah and Bachok in Kelantan, there will be offshore mooring facilities to accommodate deep-draught tankers.
Along the pipeline in Jeli, Kelantan, there will be a major storage which will hold 90 per cent of the entire system capacity.
It will be built in two phases over seven years and will also boast of a refinery in Yan to take delivery of crude oil from tankers bound for East Asia.
Besides the trans-peninsula pipeline, other petroleum project proposals include the one by SKS Development for a pipeline linking Kota Perdana in Bukit Kayu Hitam, Kedah to Songkhla in eastern Thailand. Chinese investors are also said to be interested in developing a multi-product pipeline connecting Yan and Songkhla.
Other hydrocarbon projects in the pipeline to be developed in Kedah include the US$10 billion (RM35.2 billion) refinery in Sungai Limau, Yan, by Merapoh Resources Corp Sdn Bhd and multi-billion dollar tank farms project in Gurun to be jointly developed by Pristine Oil (M) Sdn Bhd and UK-based Lenstar Investments Ltd. Both these projects have thus far secured funding.
SKS Development, a company associated with businessman Tan Sri Syed Mokhtar Al-Bukhary, is also said planning to build a refinery in Kedah with the cooperation of its Iranian partner.
0 comments:
Post a Comment