November 13, PETALING JAYA – Kuantan Port Consortium Sdn Bhd (Kuantan Port), a subsidiary of IJM Corporation Berhad, and NewOcean Energy (Malaysia) Sdn Bhd (NewOcean), a subsidiary of Hong Kong-listed NewOcean Energy Holdings Limited, a fast-growing energy supplier in the Southern China region, have signed land sublease and terminalling agreements for the development of NewOcean’s oil refinery complex at Kuantan Port.
Under the agreements, NewOcean is expected to develop, build, own and operate the oil refinery complex and related sea terminal equipment on a site leased from Kuantan Port for the manufacturing of, storing, import and export petroleum products.
The project which is estimated to cost approximately RM 5.1 billion comprises an oil refinery which has an annual production capacity of 3.5 million tonnes and a tank farm which serves as a storage depot for entreport trade purposes and a blending plant for various grade of petroleum products.
Built on a 60-acre site with existing infrastructure, the proposed NewOcean refinery will be using Kuantan Port’s existing and new berths as well as its terminal equipment to store, import and export its petroleum products and crude oil.
Developed over two phases, the project’s first phase is expected to be completed within 24 months and will yield 1.5 million tonnes annually. An additional 2 million tonnes of annual production is projected for the second phase which will take 18 months to be completed.
“We are excited by the significant volume potential offered by NewOcean to Kuantan Port’s liquid bulk cargo throughput. Investments like the refinery project, coupled with Kuantan Port’s New Deep Water Terminal will 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 cargoes as well as the transit of commodities in the East Coast Economic Region (ECER),” said Dato’ Soam Heng Choon, Chairman, Kuantan Port Consortium Sdn Bhd, who is also CEO & Managing Director, IJM Corporation Berhad.
Commenting on the agreement, Shum Siu Hung, Chairman, NewOcean said: “At NewOcean, we believe that exploring new markets and seeking business opportunities in the fast-growing eastern markets is crucial to business success. The strategically located oil refinery and terminal at Kuantan Port will enhance NewOcean’s capability in meeting the growing demand for fuels and give us faster access to the Far East and ASEAN markets.”
Dato’ Soam Heng Choon and Shum Siu Hung represented Kuantan Port and NewOcean respectively at the signing ceremony in Wisma IJM today.
The agreement is pursuant to an MoU signed by Kuantan Port, NewOcean and East Coast Economic Region Development Council (ECERDC) which was witnessed by PM Najib Razak in August 2017. At the MoU signing ceremony, ECERDC announced a total of RM9.9 billion new investments in the east coast region, of which the NewOcean oil refinery agreement was the largest.
ECERDC is a statutory body established to spearhead the socio-economic development of ECER. ECERDC plays a lead role is setting directions, formulating policies and developing strategies for the socio-economic development of ECER by promoting and facilitating investments into the region.
The NewOcean oil refinery is among the promoted activities under the oil, gas and petrochemical industry cluster in the east coast development body’s master plan. The NewOcean project is one of the more sizeable foreign direct investments taking shape in the rapidly developing east coast region and has been made possible from the support and collaboration between the Pahang State Government and ECERDC with the private sector.
The construction of the oil refinery complex is expected to commence upon obtaining approvals from the relevant authorities.