Chinese investors may back Malaysia-Thai oil link
29 Jul 2009
Chinese investors may be ready to fund a Malaysian-Thai oil pipeline, said Malaysia's privately held Merapoh Resources Corp, which is building a $10 billion refinery project in Yan, Malaysia, that will be eventually backed by China's top oil firm, China National Petroleum Co.
Local newspapers cited Merapoh executive chairman Nazri Ramli as saying the refinery, due to be completed in 2013-2014, could be linked to the pipeline, as it will be faster to transport crude oil products from the Middle East to East Asia that way.
This is the third such proposal floated in recent years, designed to channel less traffic through Asia's energy hub Singapore. "They (the Chinese) have already conducted a study and spoken to China, Thailand and Malaysia about it," Nazri said.
"Yan would be the first entry point for crude oil from the Middle East. Yan is not a busy route, and has a wide span, which is easy for vessels to manouevre," he said, referring to the region in the northern state of Kedah where the refinery is to be built.
CNPC has agreed to take oil products from the Malaysian refinery for 20 years. Saudi Aramco will be the crude supplier, Nazri is reported to have said.