Activities:
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Over the years, GPLM has laid extensive foundational work that includes in-depth researches, due diligence and feasibility studies on ASEAN and Asia Pacific countries covering technical, commercial, geo-politics, economics, market, legal and cultural aspects of the region.
GPLM has received invitations from foreign governments within the region for collaborations in the upstream, midstream and downstream oil and gas activities especially in the areas of exploration and production, refining, gas processing, distribution, logistics, marketing and retail network.
GPLM has secured official regulatory approval and special investment incentives from the Government of Malaysia in 2008 to its plan to build an integrated oil and gas complex comprising an oil refinery, petrochemical project and storage facilities with an initial investments approximately USD 5 billion (RM17 billion) for the first phase of five year.
To be strategically located in the Straits of Malacca within the Peninsula of Malaysia, the integrated complex will have the advantages of access to the main route of oil tankers from the Middle East and East Asia region.
It will provide high flexibility of obtaining critical feedstock from various crude oil terminals in GCC countries. In addition, by the fact that it is geographically located near to the fastest growth area in Asia, i.e. China, Japan and Korea, the integrated complex is readily able to tap to the main market demands.
The integrated complex is intended to be GPLM regional hub for its activities in the Asia Pacific region. GPLM has secured crude oil supply among consortium members and has finalized initial agreement on products off-take arrangement with several countries within ASEAN and Asia Pacific regions.
The proposed grass root oil refinery is targeted to have a capacity of 150,000 barrels per day (bpd) for the First Phase (first 5 years). The majority of refined products are aimed for export markets within the Asia Pacific region.
Despite the continuous growth on the global demand, the production capacity in global refining system has not improved due to limited investment in new refining capacity globally. The trend in compliance of more new stringent environmental requirement has also been increasing in the recent investment in the last several years.
Currently, there are approximately 174 refineries in Asia Pacific, with a total refining capacity of 24.1 mbpd (approx. 1205 mt) with the average refinery size of 138,000 bpd. Nevertheless, the refinery supply needs to continue increasing its capacity in order to keep pace with the demand and undoubtedly that significant capacity addition will be needed in Asia-Pacific in future.
Asia Pacific currently has a deficit of around 115 mt of total products, which today is satisfied mainly by imports from the Middle East. The deficit gets steadily larger post-2010 – around 215 mt by 2015 and 735 mt by 2035.
