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CHINA / National

Malaysia, China to jointly set up petroleum refinery
(Xinhua)
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 said.

 
 

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