Yan Petroleum Industrial Zone to become a reality soon: Mukhriz

by **Cals** Sat 26 Apr 2014, 18:25

Business & Markets 2014

Written by Bernama

Friday, 25 April 2014 18:27

BALING (April 25): The Yan Petroleum Industrial Zone (ZIPY) will be realised soon, following the signing of a partnership agreement between Merapoh Resources Corporation Sdn Bhd (Merapoh) and China Energy Huacheng Industrial Investment Co Ltd (China Energy), said Kedah Menteri Besar, Datuk Seri Mukhriz Tun Dr Mahathir.

He said, China Energy had vast experience in the field of oil refinery and was financially stable.

China Energy is expected to inject US$10 billion to enable the restructured Merapoh to proceed with the implementation of the oil refinery complex in Kedah.

"I am convinced that Merapoh, this time, will work hard to ensure (that) nothing will jeapordise the project. The project has been cancelled twice, but this time, I am convinced, both parties are serious and have the ability to complete the project.

"The state government will make sure (that) the project goes on as planned and will continue to support it. I can see the huge impact (that) it will have on the state economy.

"We have been hoping for a large project like this, to enhance Kedah's economic development," he told reporters, after launching a membership programme, organised by the Kedah Puteri Umno, here today.

He said, the ZIPY project, announced by the state government in 2007, required a lot of research to be carried out.

On Thursday, China Energy signed a partnership agreement with Merapoh, to pave the way for the development of the biggest crude oil refinery in Malaysia.

Merapoh Chairman, Datuk Bistamam Ramli, said that the agreement would see China Energy taking up a major equity of 70 per cent in Merapoh, with the remaining 30 per cent to be held by local partners.