Hong Kong's NewOcean to build 5.1b ringgit oil refinery in Malaysia

[KUALA LUMPUR] Hong Kong's NewOcean Energy Holdings Limited said on Monday it planned to build a 5.1 billion ringgit (S$1.624 billion) petroleum refinery complex on Malaysia's east coast along with two partners.

NewOcean will partner Malaysia's Kuantan Port Consortium Sdn Bhd and Malaysian east coast development body, the latter's chief executive officer Jebasingam Issace John said.

"This (refinery) will further strengthen the throughputs that will go through Kuantan Port, which has easy access to China, South Korea, Japan, Australia and Asean," he said.

Details about the size and capacity of the complex will be finalised later on, Mr Jebasingam said.

The East Coast Economic Region Development Council (ECERDC) announced a total of 9.9 billion ringgit new investments on Monday in the east coast region, of which the oil refinery agreement is the largest.

NewOcean is a Hong Kong-listed company primarily engaged in the sales and marketing of liquefied petroleum gas and natural gas, oil and electronic products.

Kuantan Port Consortium is jointly owned by IJM Corporation and Hong Kong's Beibu Gulf Holding (Hong Kong) on a 60:40 equity holdings basis. The Malaysian government has a special rights share in the consortium.

The other deals announced include a 1.95 billion ringgit investment by Asas Panorama Sdn Bhd for the development of the third phase of the Malaysia-China Kuantan Industrial Park (MCKIP 3), planned for 680 acres of land.

China's Zhaoqing Junhong will invest 1.6 billion ringgit for a facility to manufacture semi steel radial tyres at the MCKIP 2.

Malaysia has been attracting Chinese investments in recent years, as leaders of both nations forged close ties. The investments have poured into sectors such as manufacturing, infrastructure and real estate.

REUTERS