Downstream O&G projects exceeding RM1bil coming to Kertih
2/14/2011 -- The Star
Kertih Polymer Park, which is under the East Coast Economic Region (ECER) master plan, will see new major investments for downstream oil and gas projects that could easily exceed RM1bil in the coming months, said ECER Development Council chief executive officer Datuk Jebasingam Issace John.
Jebasingam said one imminent investment would likely be announced by early second quarter and there were two more investments in the pipeline.
“There will be some major investments coming into Kertih Polymer Park as we are in various stages of discussions (with the multinational corporations). We will make announcements soon as we are not able to disclose more information,” he told StarBiz in an interview.
He added that the investments would be in downstream oil and gas but would take a bio-technology focus.
Datuk Jebasingam Issace John says one imminent investment will likely be announced by early second quarter and there are two more investments in the pipeline.
Kertih Polymer Park, which is a fully-integrated plastics and polymer park, has a land area of 140ha and is set to tap into potential synergies from integration with the nearby Kertih Integrated Petrochemical Complex in Terengganu.
The park has previously drawn investment commitments totalling RM565mil from Hi Essence Cable Sdn Bhd and MIE Copper Sdn Bhd, manufacturers of cable and wire, investing RM85mil and RM20mil respectively,
Latenfield Pipe Industries Sdn Bhd has committed RM40mil while FMD Polypipes Industry Sdn Bhd will invest RM125mil for a heavy duty bags and pipes plant.
The aim is for the park to be fully occupied by 2015, with RM2bil of investments pumped in creating some 7,000 new jobs either directly or indirectly.
Jebasingam and his team made a trip in late January to the Middle East to launch the “Invest Malaysia 2011” forum aimed at attracting potential investors for the ECER-Special Economic Zone.
“This was a follow-up to the trip in May last year.
“Some potential investors have shown interest (in ECER) as they are very comfortable with investing in Malaysia,” he said.
He added that the sectors to draw interests included oil and gas, petrochemicals, tourism, halal products and agriculture.
One notable deal was struck last October involving a Middle Eastern company. The Dubai-based Oilfields Supply Center Ltd Oilfields andTanjong Agas Supply Base and Marine Services Sdn Bhd had signed a joint venture agreement to build, own, manage and operate a multi-functional common user supply base with an initial investment of RM620mil.
While the council targets the Middle East to invest in specific sectors likehalal products, oil and gas and pharmaceuticals, Jebasingam said the aim was also to draw investors from China for the agricultural and tourism sectors and Indian investors for the agricultural sector under ECER.