target of US$20 billion.
Malaysian Investment Development Authority (Mida) said Pengerang will serve as catalyst for development in areas such as refinery, petrochemicals, power, naptha cracker and regasification plants, as well as crude oil storage and liquefied natural gas storage tanks.
“Investments could reach as high as RM170 billion by 2020,” Mida said in reply to a Business Times query on investments in Malaysia’s oil and gas industry, in the wake of the inaugural four-day Offshore Technology Conference (OTC) Asia beginning here, today.
“The fact that Malaysia was selected as the first Asian country to host the OTC underscores its strategic position as an established base for major corporations and a hub for O&G
activities in the region,” said Mida, which is the principal sponsor of OTC Asia.
Prime Minister Datuk Seri Najib Razak had said recently the local O&G industry was expected to contribute siginificantly to Malaysia’s economic growth this year.
While he had earlier hinted that the project would take off this year or next year, Petroliam Nasional Bhd (Petronas) said a final investment decision on the Rapid project was only expected by the end of the month.
On the local O&G industry, Mida approved 18 projects worth RM7.05 billion last year, of which seven each were in the machinery and equipment (M&E) and petroleum and petrochemicals
sectors, engineering support services (three) and oil and gas services (one).
Of the seven M&E projects worth RM833.5 million, 81 per cent were foreign investments.
“A noteworthy project approved by Mida last year came from a foreign-owned company with investments of RM21.6 million to manufacture machine parts and components for the O&G industry,” Mida said.
For the downstream sub-sector, major projects approved last year included a joint venture with an investment of RM2.3 billion to produce blended crude petroleum oil, blended gasoline, blended diesel and blended fuel oil.
“This project will create 96 employment opportunities and complement the development of the Rapid project. Another foreign-owned project with investments of RM2.7 billion will involve the production of ammonia, citric acid and ammonium nitrate to be used as raw materials for fertilisers,” Mida said.
A Regional Technical Centre for oil and gas services involving investments of RM12.3 million was also approved last year.
Mida said investments in the local O&G industry should focus on the production of high value-added and niche market products.
It added that the available opportunities in the industry had created a robust market for various investments in the upstream, midstream and downstream sectors.
“As a result, more international companies have committed to make strategic investments in Malaysia.
“The recent shift of oil and gas exploration to deep waters in Asia Pacific has also created opportunities for the manufacture of specialised sub-sea extraction and production equipment,” Mida added.
It said enhancing exploration activities and output of oil and gas fields will help spur the sector’s growth.
Read more: Rapid investment may top US$50b - Today's Paper - New Straits Times http://www.nst.com.my/business/todayspaper/rapid-investment-may-top-us-50b-1.530511#ixzz2x03ENIDp