KAP to undertake US$20b project
SUSTAINABLE ECOSYSTEM: Development in Yan, Kedah, will include hydrocarbon refinery and townships
KONSORTIUM Asia Petrohub (KAP) is set to undertake a project with an estimated gross development value of US$20 billion (RM89.4 billion) to create a fully sustainable ecosystem in Yan, Kedah, which will include the construction of a hydrocarbon refinery facility.
Its chief executive officer Raja Chik Jaafar Raja Mokhtar said the project would see 3,015ha of land being reclaimed to make way for the refinery, in addition to portside facilities and new townships.
“The project will play an important role in creating new revenue that will most probably increase Malaysia’s gross domestic product to US$1.5 trillion yearly,” said Raja Chik, adding that it would be completed in three years.
Speaking to reporters during a press conference, here, he said the refinery, which would be named Sultan Abdul Halim Refinery Complex, was expected to refine 400,000 barrels of crude oil a day.
He said in addition to the refinery in Yan, KAP planned to build another four refineries — one in Kedah, two in Tumpat, Kelantan, and two in neighbouring Thailand.
“We target to refine two million barrels of crude oil a day once the five refineries are operational,” said Raja Chik, adding that 100,000 medium and high-cost homes would be built in Yan.
He said the refineries would be connected by transnational pipelines and a cargo rail route, which would be used to transport the refined oil to importing country China.
“The people of Malaysia and investors can benefit from the dual currencies, eco-property quantum growth, simultaneous multiple industries growth, immediate access to Asean manpower and most up-todate supply chain in Asia,” he added.
It was reported that the Organisation of the Petroleum Exporting Countries retained a positive outlook for the oil market next year, saying global demand would rise to exceed current production.
KAP was formed by United Kingdom-based consortium IMC London and a group of international engineering, VR4U Power chief executive officer (CEO) (left) exchanging documents with KAP director in Kuala Lumpur yesterday. With them are ( from second left) KAP CEO
KAP executive chairman M Taib Mahmud and Asia Petro Hub assistant ambassador Pic by Zulfadhli Zulkilfi
procurement, construction, and commissioning companies (EPCC).
Local company VR4U Power Sdn Bhd, which owns a 30 per cent stake in KAP, yesterday signed five memoranda of understanding with several
EPCCs, including China’s Hainan Zhenrong Energy Co Ltd, which will fund and build the project in Yan.
“KAP will position itself as a key producer of refined oil and petrochemicals in the region, with ready
40 years forward selling agreement of all its refined oil,” said Raja Chik.
KAP is under the patronage of Kedah’s Tunku Temenggong Tan Sri Tunku Sallehuddin Badlishah, and is in collaboration with Perbadanan Menteri Besar Kedah.