Thursday, 25 May 2017

KUB to spend US$80 mln on joint LPG terminal project

KUB Malaysia Bhd plans to spend up to US$80 million (US$1=RM4.295) under the memorandum of understanding (MoU) it entered into with Mabanaft Pte Ltd for the joint development of a refrigerated liquefied petroleum gas (LPG) terminal at Westport, Klang, Selangor.

Its President/Group Managing Director, Datuk Abdul Rahim Mohd Zin said the investment would entitle the group to have the majority shareholding of at least 51 per cent under the MoU.

“We need at least six months or until end of the year to undertake a feasibility study, and once we have determine that, we will make the financial investment decision,” he told reporters after the group’s annual and extraordinary general meeting here, yesterday.

Abdul Rahim said the purpose of the MoU was to construct, own and operate an LPG refrigerated terminal with the capacity of two times 25,000 tonnes of LPG, as well as to procure, supply and trade LPG in the regional markets.

Mabanaft is a subsidiary of Marquad & Bahls which specialises in the wholesale procurement, shipping, supply and trading of LPG worldwide.

For the financial year ending Dec 31, 2017, Abdul Rahim said the group had allocated RM2.5 million capital expenditure (Capex) to construct another LPG pipeline and an additional RM8 million for the LPG supply and dealer network expansion.