FIVE Petroleum Malaysia’s venture will focus on supporting the country’s oil and gas logistics infrastructure.
KUALA LUMPUR: Fuel retailer FIVE Petroleum Malaysia is planning to allocate approximately US$200 million (US$1=RM4.43) in capital expenditure to support its ventures in Uzbekistan.
This includes imparting its expertise for the efficient distribution of natural gas vehicle fuel to retail consumers in the Central Asian republic and modernising its energy infrastructure, its chief executive officer, Datuk Seri Dr King Lim Chin Fui, said.
Lim, who is also the company's founder, told Bernama that the due diligence process would be completed this year, with concrete action expected to operationalise the projects thereafter.
FIVE Petroleum had signed two memoranda of understanding (MoUs) with key energy entities in Uzbekistan-Afsona Group and Uzbekneftegaz-to enhance oil distribution and advance the modernisation of Uzbekistan's energy infrastructure.
The signing took place during the Malaysia-Uzbekistan Business Forum, held in conjunction with the official visit of Uzbekistan's president to Malaysia on Feb 5, 2025.
Lim said the fuel-filling market in Uzbekistan differs significantly from that in Malaysia, as it is primarily dominated by methane fuel, commonly known as natural gas vehicle (NGV) fuel.
As such, FIVE Petroleum Malaysia's venture will focus on supporting the country's oil and gas logistics infrastructure.
Uzbekistan frequently experiences a winter energy crisis, leading to shortages and supply disruptions, which in turn results in congestion and long wait times at filling stations.
"Uzbekistan is a double-landlocked country. So, logistically, there are significant challenges, and we are trying to help resolve these issues."
"Of course, we are also engaging with the Uzbek government, which has been very helpful in providing us with information. We have consulted them about energy transformation and technology," he said.
Additionally, the company has identified 70 filling stations in the strategically important Namangan region as potential partners, presenting an opportunity to establish the FIVE Petroleum Malaysia brand in the country.
Currently, most filling stations in Uzbekistan accommodate multiple brands and focus solely on fuel dispensing.
FIVE Petroleum received its operating licence from the Domestic Trade and Consumer Affairs Ministry on 15 Jan 2020 and launched its first petrol station on 7 March 2020 in Selangor.
At present, the fuel retailer operates 105 petrol stations across Peninsular Malaysia and is eyeing expansion into Sabah and Sarawak.
"We are working with our supply management team to expand our presence domestically. Once everything is in place, I believe we will be able to establish a presence in Sabah and Sarawak.
"We have already secured land in Sarawak for petrol station development. Construction will commence this year, with operations expected to begin in 2026," he said.
He added that within the next five years, the company aims to have 300 petrol stations in Malaysia (including existing stations) as part of its first-phase expansion.
Going forward, it plans to expand to 700 petrol stations nationwide. - Bernama
