Shell Malaysia starts refinery expansion with construction of new diesel processing unit

Source: Shell Malaysia

Shell Malaysia (NYSE:RDS-A) (NYSE:RDS-B) marked the start of construction of a new diesel processing unit at its refinery in Port Dickson with a ground breaking ceremony. Shell Refining Company (Federation of Malaya) Berhad owns and operates the refinery. 

The refinery expansion is one of 19 Entry Point Projects (EPP) announced by Malaysia’s Prime Minister under the Economic Transformation Programme in January 2011. The event was officiated by Datuk Seri Utama Haji Mohamad Haji Hassan, the Menteri Besar of Negeri Sembilan; Anuar Taib, Shell Malaysia Chairman and Rozano Saad, Managing Director, Shell Refining Company. 

The diesel processing unit will enable the refinery to vary its feedstock options, increase diesel production and improve its margin. It was one of the three Shell Malaysia projects announced by the Prime Minister, worth a combined capital investment of RM5.1 billion for 2011. 

In his speech, Anuar highlighted the refinery’s expansion as a demonstration of the multinational’s ongoing confidence in the country where its history spans almost 120 years : “Malaysia is one of Shell’s heartlands. We are one of the early investors in the country’s oil and gas industry; the diesel processing unit is a demonstration of our continued investment.” 

Shell Malaysia’s 2011 EPP investment announcements covers two other projects: - the expansion of the Shell MDS Wax Plant in Bintulu and the Gumusut Kakap deepwater development offshore Sabah. During the construction phase, these three projects will create approximately 1,600 jobs for local contractors.

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