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Title: Kedah oil refinery project goes back to Yan...>>>
Description: Kedah Watch


Malaysia2D - March 22, 2008 02:52 AM (GMT)
Kedah to resite petrochemical industrial zone to Gurun

By SIRA HABIBU

ALOR STAR: The proposed RM23.9bil oil pipeline project stretching 300km from Yan in Kedah to Bachok in Kelantan is set to be scrapped.

The Kedah Government has decided to relocate the proposed Petrochemical Industrial Zone project from Yan to Gurun.

Mentri Besar Azizan Abdul Razak said Gurun was more suitable for oil refinery facilities.

“We do not want to spoil the fertile soil in Yan to make way for the project,” he told a press conference yesterday.

Azizan said InvestKedah had advised him that it was not possible to include the pipeline component of the project if the site were to be relocated.

He said the refined petroleum could be transported to the Far East via the Straits of Malacca.

“We do not have to lay pipeline and spoil our environment and destroy 2,000ha of fertile soil in Yan to build oil refineries.

“Furthermore, if the project is implemented in Yan, we will have to demolish two mosques, three suraus and remove three cemeteries,” he said, adding that the project would also affect 800 houses.

He said Gurun was more suitable and was closer to existing Petronas fertilizer plant.

http://www.thestar.com.my/news/story.asp?f...6021&sec=nation

Malaysia2D - March 22, 2008 03:00 AM (GMT)
Before simply go to scrap the piping project, PAS MB shall ask how much money can be saved compared with transportation by ship.

If the benefit study says 10 billions can be saved in 20 years, what is big deal to allocate 2000 hectars for this purpose? 10 billions saved can be used for other better purposes rather than burn it as fuel cost.

If this is PAS leader's mindset, I would say sorry to Kedahans for voting PAS in last GE.

Malaysia2D - March 25, 2008 05:14 AM (GMT)
Ex-MB queries Pas oil plant move


ALOR STAR: Yan residents will continue to lag behind others in Kedah if the proposed RM50 billion oil refinery and pipeline project is relocated to Gurun.

Former menteri besar Datuk Seri Mahdzir Khalid said when the Barisan Nasional state government decided on the project, it was aimed at developing Yan to be on a par with other districts.

"We wanted to give the people in Yan the opportunity to participate in a robust development programme.

"We were going in for the long haul. We wanted the people to enjoy the benefits of development," he said after attending a Maulidur Rasul celebration near here yesterday.

Mahdzir, who is Pedu state assemblyman, was asked to comment on Menteri Besar Azizan Abdul Razak's announcement that the proposed project would be relocated to Gurun.

Azizan had said the relocation was to prevent land acquisition of prime padi-growing areas and the re-settlement of villagers.

It was also aimed at safeguarding the environment.

Mahdzir said Gurun was already an industrial area and that the former state government had planned to spread the development to other parts of the state.

"We had carried out detailed planning, including getting the approval of the majority of the people in Yan.

"The project was planned for them but now it seems they will continue to lag behind others in the state."

Under the original plan, tankers from the Middle East will offload crude oil in Yan where it is channelled via a pipeline across Yan, Pendang, Baling (in Kedah), Grik (Perak) to a refinery in Bachok (Kelantan).

Tankers will then ship the petroleum to the Far East, saving three days of voyage time by not having to go through the Straits of Malacca.

However, with the changes, Yan remains the main port of call for tankers from the Middle East but the crude oil will be transported via a pipeline to Gurun for processing.

The petroleum will then be transported back to Yan, where tankers will ship it to East Asia.

Initially, three companies were involved in the project.

SKS Development Sdn Bhd and Merapoh Resources Corporation Sdn Bhd were to build the refinery while Trans-Peninsula Petroleum Sdn Bhd was to set up the 310km-long pipeline.

SKS Development has since pulled out of the deal.

http://www.nst.com.my/Current_News/NST/Tue...icle/index_html

Malaysia2D - March 27, 2008 02:24 PM (GMT)
Kedah oil refinery project goes back to Yan...with bloated budget

By : Noor Adzman Baharuddin

Kedah’s mega RM50 billion oil refinery and pipeline project has become even bigger — with the budget for it soaring to a staggering RM83 billion. The RM33 billion increase is due to the decision to construct a man-made island to house the proposed refinery and storage facilities. Originally, the refinery and storage facilities were to have been built on reclaimed padi fields.

The proposed oil refinery and storage plant, will be set up in Yan district, as originally planned.

Menteri Besar Azizan Abdul Razak made the startling announcement after meeting the developers of the project at Wisma Darul Aman here today. The project will also be built on its original site of Yan instead of Gurun as suggested by Azizan.

Azizan said he agreed to bring the project back to Yan after listening to the counter proposals by the six investor. “I know I had announced that the refineries would be shifted to Gurun, but after hearing their counter-proposals, I have agreed to bring it back to Yan district, specifically Sungai Limau,” he told reporters after the meeting.

Azizan, who is also state assemblyman for Sungai Limau, said the investors had agreed to come up with the additional RM33 billion for the project.

He said instead of building refineries on prime padi fields in Sungai Limau and surrounding areas, the investors would build them on a four kilometre-square man-made island off the shores of the village.

“It will be safe and good for all. The padi fields and the people remain in Yan and they also stand to benefit from job and business opportunities once the project gets off the ground,” he said, insisting that the entire project would be called by its new name, the Kedah Hydrocrabon Hub, instead of ‘Yan Petroleum Industry Zone’.

The Pas-led state government had shelved the original plan to build refineries on land reclaimed from padi fields after it came into power following the March 8 general election. It had proposed that the refineries be built in Gurun and that the proposed construction of a 310km pipeline, meant to transport crude oil from Yan to Bachok in Kelantan, be shelved.

However, after the meeting, Azizan agreed with Trans Peninsula Petroleum Sdn Bhd’s plan to build the pipeline but it would only carry crude oil that would be processed by refineries to be built in Bachok.

Two other investors, Merapoh Resources Corporation Sdn Bhd and Hijaz refinery Sdn Bhd, would build the man-made island to house the refineries. Other players of the project are Pristine Oil (M) Sdn Bhd and KN Capital (M) Sdn Bhd. Another investor, SKS Refinery Sdn Bhd, would build an inland crude oil storage facility in Kuala Jerlun.

Under the original proposal, tankers from the Middle East would offload crude oil in Yan before it is channelled via a pipeline that runs across Yan, Pendang, Baling (in Kedah), Grik (Perak) and to a refinery in Bachok (Kelantan). Tankers would then ship the petroleum to the Far East, saving three days of voyage time without going through the Straits of Malacca.

However with the latest changes, Yan would still be the main port of call for the tankers but some of the crude oil would be processed on the man-made island before it is transported by smaller tankers to the Far East via the straits. Crude oil will also be transported via the 310km pipeline to refineries in Bachok.

Officials of the project said despite the huge increase in costs, they were confident of recouping their investments within a few years. They did not explain why there was a need for refineries in both Yan and Bachok, or how it made economic sense to process crude oil in Yan and then shipping it via the straits to the Far East.

http://www.nst.com.my/Current_News/NST/Thu...icle/index_html




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