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| Johor sees RM46b oil investment from Mideast |
| 09-FEB-2010 Intellasia | Business Times |
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| 9 Feb, 2010 - 7:00:00 AM |
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Johor expects to draw in RM46 billion in investment in its oil and gas (O&G) industry from two Middle Eastern companies over the next three years.
Johor Menteri Besar Datuk Abdul Ghani Othman said the two companies in Qatar and Iran have shown interest in setting up crude oil refineries in the south-east coast of Johor by 2013.
The Qatar company has committed investments totalling RM16 billion, while the Iranian company is expected to invest RM30 billion.
Abdul Ghani said the Malaysian Industrial Development Authority (Mida) and the National Economic Council have approved for the projects to be set up in Pengerang, Johor.
The projects' approval will be finalised at state government-level.
The Qatar and Iranian investments will add to the potential of the O&G sector in Johor's south-east coast, which has already attracted investors from Germany and France.
"All indications are that Johor will be able to attract more than RM50 billion in foreign direct investment in the O&G sector by 2013.
"Of this amount, RM3 billion has been secured and ground works are expected to begin before the end of the year, while Mida has approved projects worth RM46 billion for implementation over the next three years," said Abdul Ghani after opening German Erndtebrucker Eisenwerk GmbH & Co KG's (EEW) new heavyweight steel pipe factory in Tanjung Langsat, Johor on Saturday.
The new plant takes the name of EEW Malaysia Sdn Bhd.
On the Qatar and Iranian investments, Abdul Ghani said each project would generate between 600 and 1,000 jobs.
The focus of these investments would be in midstream O&G activities such as refineries, and it would be located in a 1,200ha plot of vacant government-owned land.
"The Johor State Investment Centre (JSIC) is also close to clinching an additional RM5 billion in new deals with several other major foreign companies and we are confident of securing the investments soon," said Abdul Ghani.
Meanwhile, EEW group managing director Kurt Reichow said its new factory would spur downstream industries for bending and coating of heavyweight steel pipes within a year-and-a-half.
Reichow said discussions are underway with EEW partners on developing the downstream activities that will be adjacent to its new factory.
The bending and coating facilities are expected to generate RM70 million in product capacity.
The RM250 million EEW Malaysia factory in Tanjung Langsat produces submerged arc welding (SAW) steel pipes.
EEW has four other production facilities in Germany, Brazil and South Korea, with a combined annual production of 500,000 tonnes.
The 72-year-old company, which is based in Erndtebrück in the North Rhine-Westphalia region of Germany, is a world leader in large-diameter carbon and stainless steel pipes for the O&G industry.
http://www.btimes.com.my/Current_News/BTIMES/articles/east7/Article/
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