Petronas conducting feasibility study on energy supply

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) is undertaking a feasibility study for the development of an energy supply and related infrastructure in the Terengganu Silica Valley in Marang.

President/Chief Executive Officer Tan Sri Wan Zulkiflee Wan Ariffin said the study, conducted together with state-owned company Terengganu Inc, would involve technical and commercial assessment to develop natural gas supply, power generation, supply of industrial gases and other related gas supply in the Silica Valley.

"We expect to complete the study within 18 months," he told reporters after witnessing the signing of a memorandum of understanding(MoU) between Petronas and Terengganu Inc here yesterday.

The MoU was signed by Petronas Malaysia Petroleum Management Vice-President Muhammad Zamri Jusoh and Terengganu Inc Director Datuk A Rahman Yahya.

Terengganu Menteri Besar Dr Ahmad Shamsuri Mokhtar, who witnessed the ceremony, said the MoU also included a proposal to develop 32 kilometres of gas transmission and distribution pipeline to the project to allow supply of gas through the peninsular gas utilisation network from existing gas supply systems.

He said the Silica Valley development would be partly funded by the state government, but declined to disclose the amount, saying that the proposal was still at the preliminary stage.

With a gross development value of RM13 billion, the Silica Valley will be developed in two phases - 470 hectares (ha) in the first phase and 3,520 ha in the second phase.