Friday January 29, 2010
Distinct signs MoU on subsea LNG pipeline project
PUTRAJAYA: Oil and gas services provider Distinct Objective Sdn Bhd plans to develop 4,000km subsea liquefied natural gas (LNG) pipeline from Malaysia to South Korea costing multi-billion ringgit.
The private finance initiative project for the trans-oriental gas pipeline (TOGP) will kick off once a six-month environmental impact assessment report was received, said president and chief executive officer Shaharuddin Abdul Manan.
The project was expected to take five years to complete, he said after the signing of a memorandum of understanding (MoU) on the project here yesterday.
“We hope to finalise the financial requirements soon as discussions with investors from countries like South Korea, China, Indonesia and Japan are progressing well,” he added.
Under the MoU, Distinct Objective will undertake the construction of a 2,500km pipeline from off-the-coast of Pahang to north Vietnam.
Meanwhile, its associate partner Asia Consortium Engineering Petroleum & Gas will be responsible for the 1,500km pipeline from China to the coast of South Korea.
Shaharuddin said the TOGP would contribute towards providing transport service facility to organisations in Asian concerned with energy security in the short and long term.
“The growth of the LNG industry has been rapid in recent years but it will be even more dramatic over the next five years with output capacity reaching over 370 million tonnes per annum next year.” — Bernama