Malaysia-listed Gulf Asian Petroleum has entered into an agreement withlocal companies KNM Group and Zecon to carry out engineering, procurement andconstruction of a refinery, polypropylene plant and storage facility at TelukRamunia, Johor, according to a joint statement released Monday.
Receive daily email alerts, subscriber notes & personalize your experience.Register Now
The project, which is worth MR15 billion ($5 billion), includes a150,000-200,000 b/d refinery and 400,000-525,000 mt/year polypropylene plant. The companies also plan to build a MR2 billion petroleum product storagefacility comprising four terminals, with total storage capacity of 2.328million cubic meters, at the same site, the statement said.
The complex is expected to be completed in about 43 months fromfinancial close, however, a Zecon spokesman said that no specific timelinehas been set for the project.
As part of the agreement for the refinery project, KNM will seek a thirdparty contractor to join the consortium it has formed with Zecon, thestatement said. The contractor has to be South Korean or Chinese, or a groupconsisting of members from both countries. The three-party consortium willalso have to arrange for up to 80% of the project funding, it added.
GAP was established to build and operate the complex, and had obtained amanufacturing license from the Malaysian Industrial Development Authority forthe integrated petrochemical plant April 30, 2010. GAP is 50% owned byMubadala Capital Sdn. Bhd. and 50% by Abdul Aziz Hamad Al-Dulaimi, thepresident of Gulf Petroleum, whose shareholders include Qatar GeneralInsurance and Reinsurance Company, Al-Mana Group and National PetroleumGroup.
Both KNM and Zecon are public listed companies listed on Bursa MalaysiaSecurities Berhad. --Kimitsu Yogachi, firstname.lastname@example.org