Malaysia firm to build $100b cross-border gas pipeline

Updated: 2011-07-29 09:01


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KUALA LUMPUR - A Malaysian oil and gas specialist company announced on Thursday it would build a $100 billion cross-border gas pipeline that stretches through Malaysia, Brunei, Vietnam, Indonesia and China.

The 7,000 kilometre-long pipeline, said to be ASEAN and China's first natural gas pipeline network would link Mersing in Malaysia's Southern Johor state to an offshore utility platform in Northern Natuna Islands, Indonesia and extends to Vietnam's Ho Chi Minh City and Hanoi, and eventually Hong Kong and Guangzhou in China.

The company Panelpoint said construction of the pipeline could begin in six months to a year although it has yet to receive a formal permit by the governments of the countries where the pipeline would lay.

"We managed to get the mandate from the Malaysian government but we are still working on the approvals from other governments," CEO of Panelpoint, Che Nordin Haji Ismail told a press conference here.

He said the pipeline project is privately funded, with the majority of the 100 billion U.S. dollars coming from Rochester Foundation Inc., an American firm owned by Robert A. Smith.

Che Nordin said the company has inked agreements with several Chinese and Vietnamese buyers a few years ago and is still in the midst of negotiating with potential partners and suppliers.

Malaysia's state-owned oil firm, Petronas is not involved in the project.

The project is expected to be completed in 10 years.


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