Konsortium Asia Petrohub to undertake US$20 bln development project in Yan

The consortium was formed by IMC London, a group of bankers and funders based in Britain, and several international engineering, procurement, construction and commissioning (EPCC) companies from Saudi Arabia, Europe, China, Japan, Korea and the United States.

The project's first phase, to kick off in the next six to nine months, would see the region's largest reclamation work covering 7,500 acres (3,035 ha.) of land.

The land would then house a new hydrocarbon refinery facility to be known as the Sultan Abdul Halim Refinery Complex.

Konsortium Asia Petrohub Chief Executive Officer Raja Chik Jaafar Raja Mokhtar said the plant, likely to commence within three years, would have the capacity to refine 400,000 tonnes of crude oil per day into more useful products such as petrol, diesel fuel, kerosene and others.

"We will import crude oil from other countries such as the Middle East, Africa and Venezuela and the end-products will be exported to countries like China, Japan, Korea and Taiwan," he said.

He was speaking to reporters after the signing of memoranda of understanding (MoU) among the consortium, IMC London and the international EPCC companies here today.

Concurrent with the first phase, the consortium would also develop multiple new townships within the hub as well as implement transnational pipelines and the fastest cargo rail route, Raja Chik Jaafar said.

He said the entire project would see the development of another four refinery plants in future, to be located in Kedah, Kelantan and Thailand.