KOTA KINABALU: A second methanol plant will be built in Labuan by next February, making Malaysia’s only offshore centre the world’s third largest producer of the fuel.
Labuan MP Datuk Suhaili Abdul Rahman said the plant which would be constructed by Petronas Methanol Labuan (PML) would have a daily production capacity of 5,000 metric tonnes, double that of the island’s existing methanol plant built in 1984.
“Once the new plant begins production, Labuan will become the third largest methanol producer after Trinidad and Iran,” he said after a briefing by Petronas officials on Saturday.
Suhaili said PML would take close to two years to complete the RM1.5bil plant.
PML is expected to spend another RM1bil on related offshore infrastructure.
Once operational, the new plant would eventually generate some 2,400 jobs, including those for main contractors and sub-contractors.
“This will augur well for Labuan’s domestic economy,” Suhaili added.
The Labuan Chinese Chamber of Commerce had appealed to Suhaili to push for the setting up of the new methanol plant to help stimulate the island’s economy which they described as sluggish.