Consortium appoints China company to build refinery in Kedah

KUALA LUMPUR: Konsortium Petrohub has appointed China-based Hainan Zhenrong Energy Co Ltd as the main contractor to design and build an oil refinery facility project in Yan, Kedah worth over US$20bil.

“We expected to start the construction of the first refinery in February next year, depending on the financing approvals,” said Konsortium Petrohub chief executive officer Raja Chik Jaafar.

“The first refinery would have a minimum capacity of 400,000 barrels of crude oil per day when completed,” he told reporters at a signing ceremony between Konsortium Petrohub and Hainan Zhenrong yesterday.

The consortium also signed an agreement with QMIS World Trade International, which would assist the firm to raise further funds for the projects.

The consortium was formed by IMC London, which have a 50% stake, with VR4U Technologies Sdn Bhd having a 30% share and another local company having the remainder stake.

“For the first refineries, IMC London would assist with the financing,” Raja Chik said, adding that IMC London comprises a group of bankers and funders based in Britain.

He said the project would involve the development of the region’s largest reclamation works of 8,000 acres, portside facilities and two oil refineries, which is to be known as the Sultan Abdul Halim Refinery Complex.

“We will import crude oil from the Middle East, Africa and South-East Asia, process it and export to China,” Raja Chik said.

He added that Konsortium Petrohub bought Merapoh Resources Corp Sdn Bhd in November which led to the takeover of the refinery project in Kedah.