PETALING JAYA: China Petroleum Pipeline Engineering Co. Ltd (CPP) has acknowledged the government’s decision to cancel the pipeline projects and will discuss fair and equitable compensation with the Malaysian government.
In a statement Wednesday, CPP said it acknowledged the government’s decision to cancel the Multi-Product Pipeline (MPP), Trans-Sabah Gas Pipeline (TSGP) projects and another pipeline project, linking Malacca to a Petronas refinery and petrochemical plant in Johor.
“CPP understands and respects that the decision is due to economic and financial reasons,” it said.
“CPP will proceed to discuss with the asset owner/Malaysian government for a fair and equitable compensation for the cancellation of the projects,” it said in the statement.
As a result of the cancellation, CPP said it would re-assign staff, local and foreign, previously designated to the pipeline projects to other ongoing ventures in Malaysia and other parts of the world.
“CPP hopes to work with the Malaysian government in the future pipeline project and contribute towards the economic prosperity of Malaysia,” it added.