Konsortium Asia Petrohub signs US$39 trillion deal with Hainan Zhenrong Energy

February 20, 2017 | By | Reply More

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KUALA LUMPUR: Konsortium Asia Petrohub has signed a US$39 trillion-over-39-year deal with Hainan Zhenrong Energy Co Ltd for the latter to purchase refined crude oil from the consortium’s planned refineries in Kedah.

The proposed refineries, to be located on reclaimed land two kilometres off the coast of Yan, Kedah, is scheduled to be operational in three years’ time.

The Sultan Abdul Halim Refinery Complex will import crude petroleum oil from Yemen and several as-yet-unspecified African countries, process the crude into refined products, and export them to China and other Asian countries.

Konsortium Asia Petrohub chief executive officer Raja Chik Jaafar Raja Mokhtar said that the US$39 trillion contract was signed in Nov 2016.

Konsortium Asia Petrohub is made up of shareholder Hainan Zhenrong Energy Co Ltd, which is the main contractor and funder for the project (50 per cent); VR4U Power Sdn Bhd (30 per cent – Raja Chik is the CEO of this company); and a group of undisclosed Malaysian investors (20 per cent).

Raja Chik also revealed that the consortium has received confirmation of a credit line for the project from the Chinese government.

He spoke to the media today at the signing ceremony between Konsortium Asia Petrohub and security and asset management company, Advanced Systems & Technologies Co Ltd, for the refinery project.

Hainan Zhenrong Energy’s other undertakings include building townships, a High Speed Rail network going north, power plants, as well as a highway through Kedah to support the development of the proposed refineries.

The refineries are estimated to cost RM20 billion, while the highway, to be constructed by Spike Hiway Sdn Bhd, is estimated to cost RM4.86 billion.

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