Pengerang Independent Terminals Launched Today
sourced from NST online
PENGERANG: The mammoth oil and gas facilities being constructed here will have a multiplier effect to propel the country's growth to be fully developed by 2020.
Prime Minister Datuk Seri Najib Razak said the economic spin-off from the project will be enormous as its first phase alone is expected to contribute 18.3 billion to Malaysia's gross national income (GNI) by 2020 and create more than 8,000 jobs.
Najib said the Pengerang Integrated Petroleum Complex (PIPC) will further contribute the country's GNI after 2020 with an additional RM48 billion and 15,000 more job creations.
Najib, who today launched the Pengerang Independent Terminals (PIT), said RM35 billion has been spent on building the oil and gas facilities here and RM6 billion more will be spent in five years while another RM 10 billion will be invested further over the preceding 10 years.
The facilities which currently can store 1.3 million cubic meter (cbm) of petroleum products will be expanded to a capacity of 10 million cbm when the project has been fully completed.
"The projection is that for every RM1 billion we invest in this project will have a multiplier effect of generating a return of RM20 billion," he said.
On the opening of the PIT, Najib said the completion of the project which is one of the key highlights of the Government's Economic Transformation Programme will not only contribute to further 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 demands for goods and services increases," he said.
Najib 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.
The PIT project is a joint venture between Dialog Group Berhad, Royal Vopak and the Johor state government.
The PIT is an independent oil storage terminal located within the PIPC and built on 60 hectares of reclaimed sea-bed land, has officially begun operations following the successful start-up and commissioning of Phase 1A (432 cubic meters) in April.
Najib said Malaysia is bestowed with great riches including major oil and gas deposits and therefore it is only logical for the country to develop downstream processing storage and logistics to further accelerate the growth of the oil and gas industry which is its major revenue earner.
"One notable downstream project is Liquefied Natural Gas (LNG) the global consumption of which is rising, in part because it is environmentally-friendly compared to fossil fuels such as coal," he said.
Najib pointed out that a LNG terminal has been planned to be added in Pengerang next year.
Najib said the success of the project is a testament of the government being responsive and visionary to the needs for the development of the country.
"It proves that the current government is able to translate its vision into policies and execute it," he said.
Also present were Johor Menteri Besar Datuk Seri Mohamed Khaled Nordin, Dialog Group executive chairman Tan Sri Dr Ngau Boon Keat and Royal Vopak chairman (executive board) and chief executive officer Eelco Hoekstra.
Ngau in his speech said the realisation of a vision to the project first came about in 2009.
"Our vision was to develop and build a world-class crude oil and petroleum products storage terminal facilities in Pengerang.
"Our deepwater terminals can then play a vital role as a catalyst for the development of a Refining and Petrochemical manufacturing hub here.
"Both developments will then transform Pengerang into a world class oil and gas hub in the region," he said
Meanwhile, Hoekstra said that the commissioning of PIT project will further strengthen Vopak's position in South East Asia.
"Fundamental to the success of PIT project is the partnership and support from the federal and state government," he said.
PIT is equipped with six berths including a deepwater jetty with a draft of up to 24 meters to accommodate Very Large Crude Carriers.
The facility will provide storage, blending and distribution services, triggered by growing crude oil and petroleum products import flows into Asia and Australia.
The completion of PIT is in three phases. Phase 1B, upon completion by the end of the second quarter of the year will bring on stream an additional 432,000 cbm of storage for clean petroleum products while Phase 1C will consists of 420,000 cbm of storage for crude oil with expected completion in the last quarter of the year.
When fully completed and upon expected commissioning early next year, the terminal will have a capacity of about 1.3 million cbm.
The terminal, earmarked as one of the country's key economic transformation projects, is designed to develop and reposition Southeast Johor into an oil storage and trading hub in the region.
