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10 APRIL 2024

Thursday, September 13, 2012

Pengerang will stay a fishing village for 1,000 years if...

Pengerang will remain a fishing village "for a thousand years" without the multi-billion ringgit petrochemical projects, with the local community missing out on thousands of high-valued jobs and development, Dialog Group says. 


NONEBut with the controversial projects, Dialog executive chairperson Ngau Boon Keat (left) said, the village could in 15 years expect to grow to be like Jurong in Singapore. 

"It's such a beautiful and wonderful site that we can create a lot of economic value for the country. If you don't do anything, you will remain a fisherman's village for a thousand years to come... 

"Jurong is contributing to one-third of Singapore's GDP," Ngau told reporters today.
The 60-year-old said that as a young graduate in 1972, he has taken up a job at the Jurong petrochemical refinery as there were no jobs for him in the industry in Kuala Lumpur. 

Likewise, he said the Pengerang project would create many jobs for graduates, so those who are qualified no longer need to work in the Middle East, as they do now.  

Dialog Group is partnering with the Johor government and Dutch company Royal Vopak to invest up to RM4.08 million for the development of liquefied natural gas (LNG) storage, loading and regasification terminal to import LNG for trading purposes and domestic use. 

Dialog  is also behind the RM5 billion Pengerang Independent Deepwater Petroleum Terminal (PIDPT) project. 

According to Ngau, the LNG aspect of the project will take up 150 acres of the 500 acre project area, part of which had to be acquired from local villagers.

“The price is determined according to market value. I cannot say we pay RM1 to RM2 per square feet. The government decides through a land tribunal,” he said. 

He also said that Dialog is paying RM30,000 in compensation for each of the 120 licensed fishermen affected by the project and half of that for the unlicensed fishermen, via the state government.  

He said the LNG aspect was not part of the initial plan, but was included after demand for LNG surged following the Fukushima earthquake in March 2011, which led to a nuclear disaster.

‘No environmental harm’


Ngau also assured the public that all the projects will not adversely affect the environment, just as the refineries at Port Dickson and Kerteh have not caused environmental harm. 

He said that those who claim that the Pengerang project cannot be compared to the Jurong refinery, as the Jurong refinery is located on an uninhabited island, are “misleading and poisoning the minds of reporters”. 

“I started the refinery in Jurong. It is in Singapore city. When they were short of land, they built an island, reclaimed some land. It is a misleading statement (to say the Jurong refinery is not in the city).

“If people tell you that (it is not in the city), it’s the biggest bullsh*t they can say. You use that word,” he said. 

He added that multinationals who will use the hub have stringent environmental codes and will adhere to this, even if it is higher than what is required by local authorities. 

He said that Rotterdam, which is home to a large petrochemical refinery, is still a very beautiful city and has not been damaged by the plant or by-products

“Even when we eat rice we have waste. That’s why we have to go to the toilet... are you saying you want to send it back to (rice exporters) Vietnam and Thailand? The point is how we manage the waste,” he said. 

Ngau also likened those who protest against the project, but use petrochemical products on a daily basis, to activists who want to save sharks but still consume shark’s fin. 

He said the all agreements will be signed and decisions for the LNG project will be made in June, but “there is always a chance of cancelling”. 

The project is expected to be completed at the end of 2015 and start operations by 2016.

The PIDPT is expected to be completed by the end of next year and start operating by April 2014. 

The LNG hub was announced today, alongside six other investments which total RM5.607 billion, and are expected to boost the country’s Gross National Income by RM2.361 billion and create 18,522 new jobs. 

The investors are United Plantations Berhad and Oleon Sdn Bhd  (RM96.33 million), Medical Devices Corporation Sdn Bhd (RM88.55 million), National Instruments Academy and Innovation Nucleus (RM270 million), Community Recycling through Waste Recovery Alternative Solution (RM947.125 million), Ranbaxy Laboratories Ltd (RM125 million) and Tocotrienol Researchers (RM4.7 million).

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