Work to commence on refinery complex in Malaysia, negotiations on for several refinery and petrochem complexes

09-Mar-09

Work is expected to commence in July on a Malaysian refinery complex planned as part of the Sungai Limau hydrocarbon hub. The environmental impact assessment approval is expected shortly and will be followed by land reclamation work. The project, supported by refiners Merapoh Resources Sdn. Bhd. and Hijaz Refinery Sdn. Bhd., is due to start up in 3 years. Apart from the complex itself, the project includes a 320 km oil pipeline from Yan in Kedah state to Bachok in Kelantan state, as well as a 50 km pipeline to transport oil from Kuala Jerlun to Bukit Kayu Hitam. The Malaysian government is involved in discussions for several other refinery and petrochemical complexes. In January Qatar's Gulf Petroleum Ltd. has confirmed plans to continue to invest up to US$5 bln in a refinery and petrochemicals complex in Malaysia's northwestern state of Perak, despite the global financial crisis and oil price drop. Gulf Petroleum has secured oil supplies and product offtake agreements for the project, will appoint a company to undertake the environmental impact assessment for the plant. Officials from Sudan and Malaysia's state oil company Petronas are scheduled to meet this month to discuss plans for a delayed joint venture refinery project in Sudan. Petronas had signed an agreement in August 2005 to invest in the refinery, which would process some of Sudan's Dar Blend crude.