KL okays $2b oil pipeline<\/p>\n
TOKYO (AFP): Malaysia has approved a planned consortium to be
\nformed by Japanese and other Asian companies to build an oil
\npipeline across the Malaysian peninsula at a cost of US$2
\nbillion, it was reported here yesterday.<\/p>\n
The Nihon Keizai Shimbun said the Malaysian government gave
\nits approval in late September, paving the way for the pipeline
\nnear the Thai border to be operational by 2002.<\/p>\n
The Thai government is expected to approve the project soon,
\nthe business daily said.<\/p>\n
The pipeline is aimed at easing heavy maritime traffic in the
\nStraits of Malacca, the main route through which crude oil is
\ntransported from the Gulf to East Asia.<\/p>\n
A total of 11 private and government firms from Japan,
\nMalaysia and Thailand will set up a preparatory firm to be named
\nTrans Peninsula Oil by the end of this year, the daily said.<\/p>\n
Major participants are Japanese plant engineer Chiyoda Corp.
\nand Malaysian developer East West Bridge, with partners including
\nJapanese trading houses Mitsui and Co. Ltd. and Marubeni Corp. as
\nwell as Thailand's petroleum public corporation.<\/p>\n
The joint firm will be set up in Malaysia with initial capital
\nof $3 million, Nihon Keizai said.<\/p>\n
Earlier this year, Chiyoda officials said participants in the
\nproject were finalizing a series of feasibility studies.
\nConstruction is expected to start in 1999 with initial operations
\nscheduled for 2001, the officials said.<\/p>\n
The pipeline will stretch for 190 kilometers (118 miles)
\nbetween Alor Setar in Malaysia and Sai Buri in Thailand, and will
\nbe capable of carrying two million barrels of crude oil a day.<\/p>\n
Under the plan, oil produced in the Middle East will be
\nunloaded at Alor Selar on the west coast of the peninsula and
\npiped to Sai Buri on the east coast for shipment to countries
\nsuch as Japan, South Korea and Taiwan.<\/p>\n
The Chiyoda officials said the project also involved the
\nconstruction of 48 tanks on both sides of the peninsula, each
\ncapable of holding 630,000 barrels.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/kl-okays-2b-oil-pipeline-1447893297",
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"sponsor": "Okusi Associates",
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