PM: It's time for a downstream boost

PENGERANG: The country should focus on accelerating the growth of its oil and gas industry by developing the downstream side such as processing, storage and logistics, said Prime Minister Datuk Seri Najib Tun Razak.

Citing the liquefied natural gas (LNG) industry, Najib pointed out that global demand for the commodity was rising because it was considered a cleaner option for power generation.

“Consumption of LNG is rising because it is environment-friendly compared to fossil fuels such as coal,” he said at the official launch of the Pengerang Independent Terminals Sdn Bhd (PITSB) here yesterday.

Adding that the oil and gas industry was a major revenue earner for Malaysia, Najib revealed that there were plans to add an LNG terminal in Pengerang next year.

“Malaysia has extensive experience in this sector as we started shipping LNG some 30 years ago from our first start-up plant in Bintulu, Sarawak,” he said before giving the assurance that the Federal Government was prepared to render the necessary support for building Pengerang’s LNG trading terminal.

A joint venture between Dialog Group Bhd, Royal Vopak and the state government, PITSB sits on a 60ha reclaimed site within the Pengerang Integrated Petroleum Complex.

Najib added that PITSB was one of the key highlights of the Govern­ment’s Economic Trans­formation Programme.

“This catalytic project has the potential to further Malaysia’s development and transform Pengerang into a modern and vibrant industrial town,” he said.

According to him, the economic spin-off from PITSB was enormous as Phase 1 of the project alone was expected to contribute RM18.3bil to the country’s gross national income (GNI) and create 8,000 jobs by 2020.

“Beyond 2020, the numbers are expected to grow to more than RM48bil in GNI and 15,000 jobs,” he said.

Najib added that the standard of living in the area would improve, while the Government would ensure social amenities would continue to be improved in tandem with the “unprecedented” development in the area.