KOTA KINABALU: Plans are in the pipeline to build a petrochemical
plant in Sabah that could potentially put the state on the world map of
petrochemical products.
State-owned POIC (Palm Oil Industrial Cluster) Sabah Sdn Bhd,
developer of POIC Lahad Datu, and Burel Industries Sdn Bhd signed a term
sheet today which will see RM13 billion pumped into POIC Lahad Datu for
this purpose.
It is the single biggest investment in Sabah.
Burel is a partnership of Swiss, Saudi, Chinese and Malaysian interests.
The plan is to set up a petrochemical plant in Lahad Datu to process
naphtha, a petroleum by-product, into a variety of petrochemical
products for the world market.
Burel has secured a long-term supply of naphtha from a Saudi source.
Chief Minister Shafie Apdal, who witnessed the signing at his office
today, hoped the term sheet would eventually lead to the realisation of
the mammoth project.
“You have indeed made a wise choice to select Sabah as a location. Lahad Datu is a very important and strategic location.
“With Burel, I see an emerging industrial direction in Sabah, something the Warisan-led government is pursuing.
“Chemicals have become Sabah’s single largest industrial sector going forward,” he said.
Burel Industries chairman Per N Brandtzag, who signed on behalf of the
company, said they had looked at other countries but eventually picked
Sabah because of its location and favourable investment climate.
“It’s worth mentioning at this stage that although there has been
great volatility in global markets, petrochemicals that will be produced
by Burel will continue to not only remain resilient but will enjoy a
healthy 4.2% compound annual growth rate (CAGR), which has been the case
since 2000.
“Hence we remain bullish about the future, which explains why we are keen to set up a plant in Sabah,” he said.
He expected manpower needs to peak at 3,500 during the construction stage.
“Once we commence operations, we expect to employ approximately 500 direct staff and another 1,000 indirect staff.”
Brandtzag said according to a major study by the International Energy
Agency (IEA), petrochemicals were becoming the largest driver of global
oil demand, ahead of automobiles, planes and trucks.
“Petrochemicals are
set to account for more than a third of the growth in world oil demand
by 2030, and nearly half the growth by 2050, contributing to the
production of nearly seven million barrels of oil a day by then.
“They are also poised to consume an additional 56 billion cubic metres
of natural gas by 2030, and 83 billion cubic metres by 2050,” he said.
Petrochemicals are components derived from oil and gas
that are used in all sorts of daily products such as plastics,
fertilisers, packaging, clothing, digital devices, medical equipment,
detergents and tyres.
Brandtzag said the demand for plastics – the key driver for
petrochemicals from an energy perspective – had outpaced all other bulk
materials such as steel, aluminium or cement, nearly doubling since
2000.
“Advanced economies currently use up to 20 times more plastic and up
to 10 times more fertiliser than developing economies on a per capita
basis, underscoring the huge potential for global growth,” he said.
Deputy Chief Minister Wilfred Madius Tangau said although Burel’s plan
was to process raw material brought into Sabah, the investment would
have notable impact in terms of job creation and transfer of technology.
“As the chairman of POIC Sabah, I commend the tireless efforts of the
company’s management in drawing foreign investment, especially at the
POIC in Lahad Datu, where the investment value to date is estimated at
RM4 billion,” he said.
Tangau, who is also state trade and industry minister, said his
ministry had set up a number of special task forces to redefine the
state’s industrialisation priorities and hasten its development.
Burel’s investment envisages about two million tonnes of
petrochecmical products which will be shipped overseas via about 70,000
containers a year as well as some products through POIC’s liquid bulk
jetty.
POIC Sabah Sdn Bhd chief executive officer Pang Teck Wai signed on behalf of the company.
Calvin comments:
A RM13 BILLIONS PETROL CHEMICAL INVESTMENTS IN SABAH SPEAKS VOLUME FOR ANOTHER BOOSTER FOR OIL & GAS EXTRACTION
VERY GOOD FOR ALL UPSTREAM OGSE LIKE CARIMIN, DAYANG, PENERGY, T7 GLOBAL & VELESTO
ESPECIALLY VELESTO AS ITS SHARE PRICE STILL UNDEMANDING WITH HUGE EARNINGS GROWTH CATALYSTS
https://klse.i3investor.com/blogs/www.eaglevisioninvest.com/197614.jsp
