IJM, NewOcean to develop RM5.1bil oil refinery complex – Business News

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KUALA LUMPUR: IJM Corp Bhd ’s unit, Kuantan Port Consortium Sdn Bhd, and Hong Kong-listed NewOcean Energy Holdings Ltd’s subsidiary, NewOcean Energy (M) Sdn Bhd, have signed land sub-lease and terminaling agreements for the development of an oil refinery complex at Kuantan Port at an estimated cost of RM5.1bil.

Under the agreements, NewOcean would develop, build, own and operate the oil refinery complex and related sea terminal equipment on a site leased from Kuantan Port for the manufacturing, storing, import and export of petroleum products, Kuantan Port said in a statement.

IJM chief executive officer and managing director Datuk Soam Heng Choon said investments like the refinery project coupled with Kuantan Port’s New Deep Water Terminal would reinforce the port’s position as a major regional shipping gateway to Asia-Pacific markets.

“The refinery project is also expected to promote Kuantan Port and the downstream petrochemical industry through the import and export of liquid and containerised cargoe as well as the transit of commodities in the East Coast Economic Region,” Soam said.

The oil refinery, with an annual production capacity of 3.5 million tonnes and a tank farm, served as a storage depot for entreport trade purposes and a blending plant for various grade of petroleum products,”  said the statement.

Built on a 9.71ha site with existing infrastructure, the proposed NewOcean refinery would use Kuantan Port’s existing and new berths, as well as, terminal equipment to store, import and export its petroleum products and crude oil.

Developed over two phases, the project’s first phase was expected to be completed within 24 months and yield 1.5 million tonnes, annually.  “An additional two million tonnes of annual production is projected for the second phase which will take 18 months to be completed,” it added.

The construction of the oil refinery complex was expected to start on obtaining approvals from the relevant authorities. – Bernama



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