Petronas will take the lead in developing Pengerang and Teluk Ramunia, in South East Johor, into the region's oil and gas hub.
Prime Minister Datuk Seri Najib Tun Razak said although Petronas and its partners have invested in the hub, the government would provide the necessary infrastructure facilities.
"It will be Petronas's investment with international partners, the government can look into the infrastructure support but the actual investment will be borne by Petronas and its partners.
"It (Pengerang and Teluk Ramunia as an oil and gas hub) will be a major development, it will serve the entire Asia Pacific region," he told reporters after opening Asiaflex Products Sdn Bhd in Tanjung Langsat, near Pasir Gudang here Thursday.
The 150 million euro plant, owned by french-based Technip, is designed to construct high-technology flexible pipe and umbilical used by the deepwater oil and gas fields in Asia Pacific and the Middle East.
The Prime Minister also said Technip's decision to locate its plant in Malaysia proved that the country was recognised as a hub for deepwater oil and gas hubs in the Asia Pacific region.
"We are already considered as a hub," he said, adding that with the implementation of the National Key Economic Areas for oil and gas, Malaysia would be a major hub for the industry.
The 20-hectare plant would be the only plant which would produce flexible pipe and umbilical in Asia Pacific, fulfilling orders from China and major oil and gas companies like ConocoPhilips.
Najib also said Technip was impressed with the local workforce quality which was at par with the very best in the world.
"The performance of our workers has impressed Technip," he said.
Petronas Chief Executive Officer Datuk Shamsul Azhar Abbas, who was also present during the press conference, said the development of Pengerang and Teluk Ramunia as a major regional oil and gas hub was progressing well.
Also present were Menteri Besar Datuk Abdul Ghani Othman, Chief Executive Officer of Technip Thierry Pilenko and President of Technip Malaysia Bernard Di Tullio.
On Ireland's banking crisis and its possible repercussion on the Malaysian economy, Najib, who is also Finance Minister, said the crisis could have a worldwide impact and not only on Malaysia.
But, he said the situation in Ireland was being contained at the moment.
He also said a strong recovery in the United State's economy would help Malaysia because many factories and multinationals in this country were geared towards exporting their products to the United States.
"So, if there is a big external demand and we are a major trading nation (with the US), it certainly will help a few percentage points in terms of Gross Domestic Product growth," said the Prime Minister.