KELOIL-PTT LPG Sdn Bhd (KPL), a joint venture between local oil firm Keloil Sdn Bhd and the Petroleum Authority of Thailand (PTT), is investing RM15mil to build its second liquefied petroleum gas (LPG) filling plant in Malaysia.
The new plant will be located on a 2.5ha site in the Bukit Kayu Hitam Industrial Estate near the Malaysia-Thai border.
Keloil managing director and chief executive officer Wan Zulkifle Wan Yusoff said the plant was expected to be completed in six months for operations to commence in September.
It will have the capacity to fill 2,500 tonnes of LPG a month, which is more than half the requirement of Kedah, he told reporters yesterday after the groundbreaking for the plant by Kedah Mentri Besar Datuk Seri Syed Razak Syed Zain.
The new plant was expected to increase KPLs revenue by 30%, he said, adding that the companys existing 4ha LPG filling plant in Bachok, Kelantan, and its trading activity had generated almost RM100mil in revenue last year.
Wan Zulkifle said KPL was expanding to Bukit Kayu Hitam in view of the market potential in northern Peninsular Malaysia.
He said the new plant would be able to fill 12kg, 14kg and 50kg gas cylinders with speeds of up to 1,200 units per hour for the smaller cylinders.
He said the company provided filling services for LPG cylinders from oil companies operating in Malaysia such as Shell, Petronas, KUB GAS, Summit, Esso and BP, as well as bulk sale to their customers.
PTT Public Co Ltd international marketing department vice-president Wicha Chuichum said the new plant provided a logistical advantage as PTT had an oil depot in Songkhla about 80km away.
Keloil holds a 60% equity in KPL through its wholly-owned subsidiary Keloil Botting Sdn Bhd while PTT holds the remaining 40%.
KPL, which was established in 1999, has the sole right to distribute PTT products in Malaysia.
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