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Published: Friday April 27, 2012 MYT 12:00:00 AM
Updated: Monday May 27, 2013 MYT 1:28:45 PM

Pengerang project under way

KOTA TINGGI: The Pengerang Independent Deepwater Petroleum Terminal project is now officially under way.

The RM5bil complex on a 323.74ha site is a joint-venture project between Dialog Group Bhd, Netherlands-based Royal Vopak and State Secretary Johor Inc.

The complex, which will start commercial operations in 2014, provides storage, blending and distribution services for crude and clean petroleum products.

The facilities include storage of petroleum products with an initial capacity of 1.3 million cubic metres (cbm) with provisions for expansion by a further one million cbm.

With a deepwater draft of 24m, the terminal would be able to handle very large crude carriers and ultra large crude carriers, Johor Mentri Besar Datuk Abdul Ghani Othman said at the ground-breaking ceremony yesterday.

He said the area had what it took to become a large oil refining and petrochemicals manufacturing centre and a trading hub for oil, petrochemical and liquefied natural gas (LNG).

“Pengerang is strategically located along international shipping routes, deep water port facilities and close to petroleum production and demand centres in Middle East, India and China,'' he said.

Also present at the event were Pengerang Independent Terminals Sdn Bhd chairman Dr Ngau Boon Keat and Royal Vopak (Asia Division) president Patrick van der Voort.

Abdul Ghani said the Government was confident that Pengerang would be developed in 10 years, unlike Singapore which needed 20 years, given the availability of new technology and technical know-how.

He said that despite not having oil resources, Singapore was among the top three global players in trading, refining and manufacturing of oil and gas products and equipment.

“There are many factors working in our favour, including abundant land and close proximity to demand centres, which will facilitate potential collaboration with global partners in logistics and product distribution,'' said Abdul Ghani.

He said the state needed to fully tap into the strength in the sector and leverage the unmatched natural and strategic advantages to transform south Johor into a world leader in the oil and gas industry.

Abdul Ghani said apart from Dialog Group, Petronas would invest RM60bil in Pengerang to set up its refinery and petrochemical integrated development complex and work on the project would begin next year.

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