The story goes that the pipeline cost RM50bn (US$14.5bn) and 70% coming from foreign sources. A large portion has been promised by National Iranian Oil Company (NIOC).
Refineries will be built in Yan and Bachok, touching Kedah's west coast and Kelantan's east coast. The 320km pipeline will also service downstream industries planned along the pipeline (e.g. shipyards, slipways, lubricant plants). Already 3 jvs have been signed. One for each of the refinery and one for the pipeline. The Yan refinery will be built by NIOC and SKS Ventures Sdn Bhd. SKS Ventures Sdn Bhd has just signed a US$16bn deal to develop 2 gas fields in southern Iran.
The Bachok refinery will be built by Merapoh Resources Corp as the lead team. The pipeline will be built by Trans -Malaysia Petroleum. Foreign investors having signed up include Saudi Arabia, South Korea and Japan, following after Iran being the biggest jv partner. Kedah and Kelantan will have a 5% stake in each of the jv.
Once operational the pipeline can ship 800,000 barrels a day or about 10% of the daily volume handled by Singapore. Currently, nearly half of the world's oil go through the Melaka Straits. The plan while ambitious, is doable and will bring about downstream industries as planned to the industry-starved northern Malaysia region. Naturally environmentalists will go ballistic over the forest area the pipeline will cut through.
Bina Darulaman Berhad, an investment holding company, engages in oil palm plantation and property development primarily in Malaysia. It operates in four segments: Property Development, Quarrying and Road Paving Work, Construction, and Operation of Golf Resort and Hotel. The Property Development segment involves in the development of residential and commercial properties. The Quarrying and Road Paving Work segment operates granite and sand quarry and provides civil engineering contract services. The Construction segment provides building and general contract services for infrastructure facilities, civil works, water supply and treatment plants, airport buildings and runaways, bridges, roads, and industrial buildings. The Operation of Golf Resort and Hotel segment owns and operates golf resort, as well as involves in hotel business. Bina Darulaman also supplies construction materials. The company was incorporated in 1995 and is based in Alor Star, Malaysia. Bina Darulaman Berhad is a subsidiary of Perbadanan Kemajuan Negeri Kedah. Sources reveal to The Scribe that Bina Darulaman Berhad was supposed to be one of the beneficiares of the Project.
A check by The Scribe revealed that Merapoh Resources Corporation Sdn Bhd ,Hijaz Refinery Sdn Bhd, Pristine Oil (M) Sdn Bhd, KN Capital (M) Sdn Bhd and SKS Refinery Sdn Bhd are all RM 2.00 companies. It appears now as reported by ANTIMAMAK, Merapoh Resources Corporation does not exist. It looks like the poor foreign investors have The Scribe has also found out that there will be a refinery in Bachok and one in Sg Limau. If this is true, the gravy train is running again even under PAS!The refinery will be on a man made island eventhough they already made a bridge to Pulau Bunting. Not a single ship will ever use this facility in order to save 3 days sailing, how long does loading and unloading take? And what will be the cost per shipment? Can someone please shed some light on this?