Malaysian company invests nearly US$ 2 billion in LNG plant and filling stations

MNGV, which is licensed under the Petroleum Development Act 1974 to import, distribute, market and undertake the sale of natural gas in Malaysia, will also spend RM1 billion (US$ 330 million) as capital expenditure for the LNG plant, which will be located in Tanjung Langsat, Pasir Gudang, state of Johor.

As published by Business Times, this plant will have a capacity of three million tons per annum, or 420 million standard cubic feet per day (mmscfd) of compressed natural gas to support MNGV’s initial 200 1GasStation facilities nationwide as well as other industrial off-takers.

Initially, half of fueling sites will be built in the Klang Valley, and the rest probably in Penang, Johor and Negri Sembilan. The company also plans to bring in a mobile natural gas station from South Korea within the next three months to serve mainly buses and lorries.

Under the joint venture with MNGV, Jeffa will facilitate the funding requirement and act as the main contractor of the projects. MNGV will hold a 40 per cent stake and Jeffa the balance 60 per cent. All projects are expected to be fully completed by 2016.