Malaysia To Build US$7 Bln Trans-Peninsular Oil Pipeline

KUALA LUMPUR, May 7 (Bernama) -- Malaysia has agreed to build a US$7 billion trans-peninsular oil pipeline from Kedah to Kelantan in order to transport oil from West Asia to East Asian countries, Prime Minister Datuk Seri Abdullah Ahmad Badawi said today.
"Yes, we have agreed to the pipeline," he told reporters after opening the World Halal Forum 2007 here.
Abdullah, who is also the Finance Minister, said the pipeline project was a part of the government's move to develop the much-touted Northern Corridor.
"We have always wanted to do more for that area and this also will take care of the Eastern Corridor," he said.
It was reported that Malaysian petroleum transporter Trans-Peninsula Petroleum Sdn Bhd planned to invest US$7 billion over eight years to build a crude oil pipeline to help ships bypass the busy Straits of Malacca.
According to the report, the project will involve the construction of two oil refineries with the pipeline crossing three states, linking from Yan in Kedah to Bachok in Kelantan.

tunku : this is a good project approved by the government. i just wish that the company involved in this project that is Trans-Peninsula Petroleum Sdn Bhd made publicly known as to who are the shareholders etc.it is a big big project worth RM24.5 billion.just imagine if there is any brokerage fee, standard brokerage fee is about 2%, that alone is about half a billion.MAY BE this is what annuar musa was referring to that billions of ringgit coming to kelantan.hopefully that the government will look the environment aspects too before the construction of this pipeline is done.