Taiwan’s Chinese Petroleum Corporation, the major shareholder of Kuokuang Petrochemical Technology Corporation (KPTC), has indicated that it is scrapping its investment plan in Pengerang in Johor, according to reports.
Local news reports have highlighted a report in Taiwan’s Commercial Times saying that CPC chairman Lin Sheng-chung has confirmed that Kuokuang had cancelled the RM42bn plan as a result of new trends in the industry.
According to blog visitor Jayson, the reports have appeared in the front pages of the local Chinese press here (Oriental Daily) and here (Nanyang).
Johor Petroleum Development Corporation officials are reportedly unhappy they had not been informed prior to the CPC announcement.
See an English translation (in fz.com) of the reports in the Chinese press.
An earlier report in the Commercial Times said the shale gas exploitation in United States has resulted in a radical change in the industry. See an earlier fz.com report here. (Now, shale gas extraction raises fresh environmental concerns. More on this, later.)
Meanwhile, an executive working in the petroleum industry told me that very few new conventional oil refineries are being built these days.
The Kuokang refinery project, KPTC – Malaysia Integrated Refinery and Petrochemical Development (KPTC-MIRPD), is one of three synergistic components in the mammoth Pengerang Integrated Petroleum Complex (PIPC) project, the other two being a deep water wharf terminal and Petronas’ Refinery and Petrochemical Integrated Development (Rapid).
The Kuokang project had been opposed by residents of Taiwan over environmental concerns, prompting its relocation to Pengerang, where it was also hit by similar protests. Pengerang residents no doubt will be rejoicing over the Taiwan firm’s latest decision. But the KPTC site in Pengerang only makes up 10 per cent of the 22500-acre PIPC site.
In an unrelated development, the African nation of Chad has just announced the expulsion of China National Petroleum Corporation, the state oil corporation of China, over “intolerable” pollution and environmental damage.
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Does anyone get the feeling this project is just going to fail? I believe it will end up MUCH smaller than what it was first announced. It has the feel of over-build with nowhere to go..
Could it be due to the change in Johors menteri besar?
Need for both parties to ‘renegotiate’?
Which is why we must stop this project and protect our environment.
We are getting not just less and less lobster but also less and less fish, prawn and other seafood which means more and more expensive seafood for our table.
Yes, and remember the pollution of our sea water too. The coastal waters are not getting any cleaner.
Taiwanese objected to this project in their country.
For the same reason we should object to it for the environmental risks.
For the sake of the lobsters in Pengerang, we should protect the environment there.
Allahuakhbar! The Chinese who toiled and toiled for their hard earned monies, do have some heart for all!
These people compete in the international arena, unlike our folks here who wait for people to come to look for them. That is the difference. The Chinese compete with their ability and knowledge, whereas our folks at home, compete on a “who do you know basis” not a “what do you know basis”! That is why Malaysia will never be able to compete!
Inilah ketuanan!
Selamatkan Malaysia! Pakatan Harapan Rakyat!
Hi A Sobri
You write in Engllish and not in Bahasa hence your many many messages never reach your niched audience to reflect and act before too late.
Translate for bacaan Umun :
Allahuakhbar! Orang Cina yang bekerja keras dan bersungguh-sungguh untuk keuntungan wang, adalah tunjuk sikit hati untuk semua!
Orang-orang ini bersaing di arena antarabangsa, tidak seperti orang kita di sini yang menunggu orang ramai datang untuk mencari mereka. Itulah perbezaan. Orang Cina bersaing dengan kebolehan dan pengetahuan mereka, manakala orang kita di rumah, bersaing berasas pada “siapa yang anda tahu” dan bukan berasas pada “apa yang anda tahu”! Itulah sebabnya Malaysia tidak akan dapat bersaing!
Inilah ketuanan!
Selamatkan Malaysia! Pakatan Harapan Rakyat!