KUALA LUMPUR: Konsortium Asia PetroHub (KPHUB) has signed agreements with two companies to facilitate the US$20 billion development of oil refinery ecosystems in Kedah.
In a statement yesterday the company said the first agreement was with China-based Hainan Zhenrong Energy Co Ltd, as the refinery complex’s main contractor.
The second is with QMIS World Trade International, which has close collaboration with various Chinese conglomerates, to facilitate the listing of KPHUB on the US Nasdaq and Hong Kong Stock Exchange to raise funds for the project.
It said the project comprises the development of the region’s largest reclamation works of 3237.49 hectares of land within the region of Yan, Kedah to be known as the Sultan Abdul Halim Refinery Complex.
The convergence of industries in this project said KPHUB, will be the initiator for Kedah’s development comprising refineries, crude/naphtha tank farms, petroleum products farms, power plants, ports and harbours, heavy industries, petroleum terminals, railways and roads, alongside the mixed development of 100,000 medium upper homes.
Chief executive officer Raja Chik Jaafar said the concurrent construction and development of the refinery and spins-off projects are expected to be completed within five years.
“Under the project, KPHUB will import or barter trade crude/naphtha oil from the Middle East, Africa and Southeast Asia for processing into refined products for China.
“The consortium’s refinery products have been fully sold in a forward purchase to Hainan Zhenrong for the next 40 years,” he added.
He Chik said the project will be an initiator for further growth beginning with Kedah and then throughout the country, while creating over a million job opportunities and profiting over 100,000 Malaysian companies.
“Malaysia is the best place for energy convergence players looking to expand or invest into.
“Not only do we have the access to Asean’s natural resources and food, we are also abundant in skilled human capital,” he added. — Bernama