Oil Pipeline Planned in Malaysia
Companies from three countries signed agreements in Kuala Lumpur Monday for construction of a $7 billion oil pipeline through northern Malaysia.
The pipeline planned by Malaysian, Indonesia and Saudi firms will divert about 20 percent of the oil currently flowing through the strategic Malacca Strait, Alalam Satellite TV reported.
Oil for the pipeline will be provided by Al-Banader International Group of Saudi Arabia.
Everyone can use the pipeline, says Rahim Kamil Sulaiman, chairman of Trans-Peninsula Petroleum, owner of the project. It is to direct traffic away from the international waterway of the Straits of Malacca.
The first phase of the project is expected to begin in 2008 after completion of land acquisition and environmental and social impact assessments.