RM16b boost for Pengerang
27 JUNE 2014 @ 12:29 AM
CASCADING EFFECT: PIPC’s Phase 1 investment alone set to contribute RM18.3b to GNI by 2020, says PM
PENGERANG Independent Terminals Sdn Bhd (PITSB), an oil and oil-based products storage facility operator, plans to gradually invest a further RM16 billion over the next 15 years to boost capacity to challenge global hubs in Rotterdam, Houston and Singapore.
Prime Minister Datuk Seri Najib Razak said the investment, which is within the Pengerang Integrated Petroleum Complex (PIPC), would see an expansion of the terminals from 1.3 million cubic metres to 10 million cubic metres.
“What is also very important is that with every RM1 billion investment, the multiplying effect will be RM20 billion,” he said at the opening of the PITSB’s Phase 1A, here, yesterday.
Najib said PIPC’s Phase 1 investment alone is expected to contribute RM18.3 billion to Malaysia’s gross national income (GNI) by 2020 and create more than 8,000 jobs.
“After 2020, PIPC will further contribute an additional RM48 billion to the country’s GNI with and create 15,000 more jobs,” he added.
PITSB is one of the catalytic projects under PIPC.
Najib said the completion of PIPC, which is one of the key highlights of the government’s Economic Transformation Programme, will not only contribute to Malaysia’s development, but also transform Pengerang into a modern and vibrant industrial town.
“There will be new roads, better supply of electricity and water, new schools, modern homes, banks, medical facilities, shopping malls and office complexes.
“There will be new business opportunities for the locals as demand for goods and services increases,” he said.
The living standard in the area will improve and the government will ensure the enhancements of social amenities.
“I would like to stress that this project will bring benefits to the people of Pengerang,” Najib added.
The 60.7ha PITSB is part of the 8,094ha PIPC, which also houses Petroliam Nasional Bhd’s RM90 billion Refinery and Petrochemical Integrated Development (Rapid) project.
PITSB is a joint-venture between oil and gas services provider Dialog Group Bhd, Johor government and Royal Vopak, which is the world’s largest independent storage provider.
Dialog Group executive chairman Tan Sri Dr Ngau Boon Keat said the consortium plans to invest RM6 billion in the next five years and another RM10 billion in the following decade after investing RM2 billion in Phase 1A.
“We expect to clinch more deals. As at April, a total of 29 ships have stopped over to use our facilities and we expect more to come in,” he said.
The facility allows oil majors and other oil and gas service providers to store oil and petroleum-based products.
It is equipped with six berths, including a deepwater jetty with a draft of up to 24m to accommodate very large crude carriers.
Ngau said a liquefied natural gas storage complex is also in the offing and the plan is undergoing a feasibility study.
