It is most likely that a
Taiwanese company will also be investing more money to build another 400,000
barrel per day refinery. Plus the tank farm I described yesterday all these
projects will take the investments in Pengerang to over RM100.0 billion
already.
Petronas’ refinery plus the
petrochem plants will make Pengerang the petrochemical and petroleum hub of South
East Asia. And we will overtake Singapore in certain products. Its all because
of land – they don’t have land.
This entire project in
Pengerang is feasible because of one very large ingredient – the deep water berthing at this spot. The water depth
is 24 metres which can take in VLCC tankers (Very Large Crude Carriers) as well
as ULCC tankers (Ultra Large Crude Carriers). VLCCs are in the 160,000 to 220,000 250,000
ton range whereas ULCCs are in the 320,000 – 550,000 tons range, floating steel
mammoths. Here is a picture of an ULCC tanker : which weighs 441,000 tons and
is 1,247 feet long. This is a monster.
Folks this is the 21st
century. There are 7 billion people in this world and the number is growing.
The world’s population will definitely stabilize and we will all live in
balance with nature and with ourselves. A 7 billion world population will
require huge amounts of products – fuel, petrochemicals, plastics, food and
stuff to maintain modern life. So put your best foot forward and educate our
kids well. The future is simply great. Do not despair.
These industries have to
build big. They must have the economies of scale. VLCCs, ULCCs, 22,500 acres of
petrochemical plants, 500 acres of tank farms will be basic facilities to meet
this huge demand from a 7 billion world population.
Deep water berths to receive
all these VLCCs and ULCCs are not man made. They are naturally occurring. The
Creation made them. Singapore only has 18 metre berths – a drawback to attract
ULCCs. This is where Pengerang makes the difference.
Dr Ngau Boon Keat, the
Executive Chairman and founder of Dialog is an oil man with over 40 years
experience. He has experience working in Petronas since its early days as well.
Since 1984 he has built his company Dialog Bhd into a significant player in the
oil and gas business. They build tank farms.
Dr Ngau had a dream and a
vision. Six years ago, he had a one and half hour lunch with Dato Ghani Othman
the MB of Johor. In that lunch he explained how his team had surveyed the
Malaysian coastline and discovered that Pengerang had the best natural sites to
host a deepwater terminal, a tank farm and hence provide many competitive
advantages to incubate an entire petrochemical industry. The numbers were huge –
RM100 billion investment, 300,000 barrels per day refineries, 5 million cubic
metre tank storage capacities, 6000 acres for Petronas’ petrochemicals (RAPID)
and so forth. Plus Singapore was right next door. They would compete in some
places but also complement Singapore in many other areas.
The savvy MB, being a trained
economist immediately grasped the significance and hugeness of the entire concept. Six years
later Pengerang is moving.
Folks, 20 years ago as a
banker I helped finance the Kemaman Supply Base in Terengganu. This was a supply base from
where supply ships would transport materials (steel pipes, diamond tipped drills
to the oil rigs in the South China Sea), We used to visit Kemaman – a beautiful natural
port in Terengganu, just across the border from Pahang. The sea water in Kemaman is a thick royal blue right up
to the jetty – under your feet. Today,
if you visit Kemaman there are traffic jams, strip malls, shopping
complexes, housing, office complexes and
(unfortunately) traffic jams. Kemaman is also cosmopolitan now – people from all
over the world live and work in Kemaman. (And all the way to Kerteh as well).
The same changes are going
to impact Pengerang. Kemajuan is coming - in huge doses. The Pengerang project will be larger than Kerteh, Gebeng
and Melaka (Petronas Refinery) combined. So do watch this space.
I have one more instalment
on Pengerang. Its about some angry lobsters. Till then.
9 comments:
In early 90 a friend name Shamsul Azhar mooted the idea of a tank farm for crude oil storage in Perak. We identified Pulau Sembilan off Pangkor as the suitable site. Had a meeting and presentation to Sultan Perak in Istana Kuala Kangsar as the Island classified as Sultanate land . Brought in a tank farm operator from Rotterdam who wanted to invest and operate. Had a discussion with Dato MUSTAPHA Muhammad , present to the MB and visit and discussed with National Oil of Iran Coporation , signed MOU with Iran Development and Renovation Organisations (IDRO). He had so much energy and drive. He had vision but didnt had the right connection, the right MB
And many wrong feet that he step upon. Nothing great about the MB and Dr Ngau , it just that those people who didn't belief in one Malay vision and dream.
setuju Malaysia should embark on this initiative long time ago. Just imagine, Singapore , a small island, with not a drop of oil resource in their country can corner this refinery market and market the finished product and obtain huge foreign exchange from this deal.
Malaysia is strategically located, far from natural calamity and we have the land and the people.I am sure this will project will bring huge benefits to the nation.
When I was at primary and secondary school (1970s to 1980s), I was schooled at Johor Baru but stayed at Singapore because my father was cari makan in Singapore.
My dream during that time if I can start an wholesale business based in Johor supplying to ships anchoring near Singapore things like petrol, cooking oils, foods and water. I believe this could be a lucrative business as the ships are looking for cheaper source than Singapore. As our exchange rate is also lower than Singapore, this will give Malaysia an added advantages.
I am not sure whether anyone is looking at this initiative. Hopefully, Tuan Syed can explore further.
I am not sure
I was a bank manager with one of the leading banks in Kemaman (circa 1993-96) and at that time Kemaman Supply Base was better known as KSB and just about to take off and there are quite a number of aspiring bumiputera companies operating there though on smaller scale. Most of the bigger companies were chinese owned or on joint ventured with bumis.
Somehow our PETRONAS then seemed to shun solid bumis companies and only extend meagre contracts to them. Till now I wonder whether PETRONAS not trusting bumis companies or perhaps bumis companies performance were then not to their (PETRONAS) standard. A joint ventured companies seemed more to their taste. Hmmn... I wonder why...?
Nevertheless, it is good to know that a Malaysian company named dialog is initiating a big project in Pengerang and in full support by PETRONAS and Bumi MB.
May ALLAH SWT blessed this land of the Melayu and all the various races residing in it.
Oh Ghani has a vision alright.
Singapore present and future investment destination of UMNOputras build with TANAH MELAYU sand. I am sure the bastard, kiasu fucking communist PAP in Singapore is rolling in laughter at the stupidity of UMNO Mats.
Thank you UMNOputras for buliding the future metropolis of the pendatangs which you are actively kicking out of Malaysia.
Kg Chap,
Petronas was controlled by Kelantanese - a legacy issue from Tengku Razaleigh's time. Kelantanese will not support other Malays. So, when non Kelantanese Malays tried to become Petronas vendors, they were blocked by the Kelantanese Malays in Petronas. Until today Kelantanese Malays prefer to do business with Chinese and Europeans instead of with fellow Malays. The Kelantanese Malays have this serious issue about non Kelantanese Malays.
That is why Mahathir should not have stepped down. He wanted to steer this country into a developed nation years ago but his deputy shot the Sheriff.
In this country, it is sad that the views of the orthodox minority is more important than anything else.
Just sit on the streets, shout all day long and all visionary projects will be halted.
We need good strong leaders to shut the anti-establishment groups once and for all, if we want this country to progress. Hopefully Johor will be smart enough to kick the anti-establishment groups, and move a paradigm up.
A GOOD MAN DOES NOTHING.
during that time petronas was lead by hasan merican. People say he was good. so his choice not selecting bumi firms may got good basis.
Hahaha! Project reject pun hampa ambik no. Kahkahkah! Hancurlah negara kalau hampa berkuasa.
anon 15/may at 2.34 is a big liar, now petronas is not control by kelantanese at all, a big lie , petronas is control by mahathir since 1988, basir, azizan, hasan merican and now samsul , all mamak laa....crony mahathir , anon is a crony to divert issues.....he lied and spreadingg untruth , what is his agenda.....
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