Skip to main content
South Johor Being One-Upped By North Kedah

While everyone is doing Nusajaya Dreamin', things are happening up north (no, I am not talking about the shootings in southern Thailand). There will be an oil pipeline to be constructed across northern Malaysia, and the project has been signed, sealed and delivered. Due to start work on August 2007. The aim is to avoid the pirates-ladened and congested Melaka Straits.

The pipeline will cost RM50bn (US$14.5bn) and 70% will be from foreign sources. A large portion has been promised by National Iranian Oil Company (NIOC). The big losers here include Singapore and the US. Iran is not a close buddy of the US, Singapore is. The pipeline will divert stock away from Singapore thus lessening Singapore's influence and hence US strategic pawns in the region. Washington -Teheran ties are strained to say the least. Malaysia, always seen as the neutral-Islamic factor, can play the best of both hands. The ties that bind, the friend you need.

Refineries will be built in Yan and Bachok, touching Kedah's west coast and Kelantan's east coast. The 320km pipeline will also service downstream industries planned along the pipeline (e.g. shipyards, slipways, lubricant plants). Already 3 jvs have been signed. One for each of the refinery and one for the pipeline. The Yan refinery will be built by NIOC and SKS Ventures Sdn Bhd. SKS Ventures Sdn Bhd has just signed a US$16bn deal to develop 2 gas fields in southern Iran. The Bachok refinery will be built by Merapoh Resources Corp as the lead team. The pipeline will be built by Trans -Malaysia Petroleum. Foreign investors having signed up include Saudi Arabia, South Korea and Japan, following after Iran being the biggest jv partner. Kedah and Kelantan will have a 5% stake in each of the jv.

Once operational the pipeline can ship 800,000 barrels a day or about 10% of the daily volume handled by Singapore. Currently, nearly half of the world's oil go through the Melaka Straits. The plan while ambitious, is doable and will bring about downstream industries as planned to the industry-starved northern Malaysia region. Naturally environmentalists will go ballistic over the forest area the pipeline will cut through.

Comments

SS said…
is this for real ?
doraiddd said…
wait till the thais above finally start digging that blardy canal from left and right to join in the middle.

maybe tis the only way for them to put away the grenades, lay down the guns and pick up em shovels.

will malaisesia still be a peningsular then?

btw dali, you make me wanna do my own blog too. So many fans, such adulation... but then my england not the so powderfull-one...
Salvatore_Dali said…
is it true, well, if i can make them up, i should be writing fiction ... i think the reason it wasn't circulated was due to the global tension with Iran (british marines thingee) ... our epu have enormous power over media dissemination and propaganda dissemination ... can pick and choose, can pick and choose what appears on front page, can make story disappear...
dummy said…
Kedah Govt. Co. Bina Darulaman Bhd (BDB).. Is it a potential beneficiary from the project, please?
Salvatore_Dali said…
too far fetch to play kedah counters yet... main beneficiary is Syed Mokhtar vehicles, dont know which one yet...

Popular posts from this blog

My Master, A National Treasure

REPOST:  Its been more than two years since I posted on my sifu. This is probably the most significant posting I had done thus far that does not involve business or politics. My circle of close friends and business colleagues have benefited significantly from his treatment.


My Master, Dr. Law Chin Han (from my iPhone)

Where shall I start? OK, just based on real life experiences of those who are close to me. The entire Tong family (Bukit Kiara Properties) absolutely swear that he is the master of masters when it comes to acupuncture (and dentistry as well). To me, you can probably find many great dentists, but to find a real Master in acupuncture, thats a whole different ballgame.


I am not big aficionado of Chinese medicine or acupuncture initially. I guess you have to go through the whole shebang to appreciate the real life changing effects from a master.


My business partner and very close friend went to him after 15 years of persistent gout problem, he will get his heavy attacks at least…

PUC - An Assessment

PUC has tried to reinvent itself following the untimely passing of its founder last year. His younger brother, who was highly successful in his own right, was running Pictureworks in a number of countries in Asia.

The Shares Price Rise & Possible Catalysts

Share price has broken its all time high comfortably. The rise has been steady and not at all volatile, accompanied by steady volume, which would indicate longer term investors and some funds already accumulating nd not selling back to the market.


Potential Catalyst #1

The just launched Presto app. Tried it and went to the briefing. Its a game changer for PUC for sure. They have already indicated that the e-wallet will be launched only in 1Q2018. Now what is Presto, why Presto. Its very much like Lazada or eBay or Alibaba. Lazada is a platform for retailers to sell, full stop. eBay is more for the personal one man operations. Alibaba is more for wholesalers and distributors.

Presto links retailers/f&b/services originators with en…

How Long Will The Bull Lasts For Malaysia

Are we in a bull run? Of course we are. Not to labour the point but I highlighted the start of the bull run back in January this year... and got a lot of naysayers but never mind:






























p/s: needless to say, this is Jing Tian ... beautiful face and a certain kind of freshness in her looks and acting career thus far



http://malaysiafinance.blogspot.my/2016/12/bank-negara-may-have-switched-on-bull.html


I would like to extend my prediction that the bull run for Bursa stocks should continue to run well till the end of the year. What we are seeing for the past 3 weeks was a general lull where volume suddenly shrunk but the general trend is still intact. My reasons for saying so:

a) the overall equity markets globally will be supported by a benign recovery complemented by a timid approach to raising rates by most central banks

b) thanks to a drastic bear run for most commodities, and to a lesser extent some oil & gas players, the undertone for "cost of materials" have been weak and has pr…