Taiwan firm gets nod for Pengerang plant

PETALING JAYA: A Taiwanese petrochemical firm has come a step closer to setting up a refinery in Johor following its failure to do so in its home country because of public opposition.

The Kuokang Petrochemical Technology Company has obtained a detailed environmental impact assessment (DEIA) approval from a consultancy known as Daya Eco Techno Sdn Bhd.

The DEIA report refers to the proposed plant as KPTC- Malaysia Integrated Refinery and Petrochemical Development (KPTC-MIRPD). It will be located in Pengerang.

Kuokuang, a state-owned company,  had wanted to build a similar plant in Taiwan in 2005, but it abandoned the plan following public protests there.

Daya Eco’s report, which was released last Tuesday, predicted environmentally sensitive emission from the proposed plant, but said it would be “within the acceptable level” during “normal” operations.

The report also stated that the project site, which covers about 1,476 hectares, had already been disturbed by agricultural, mining and ex-mining activities.

“During the operational stage, air emission, waste generation and industrial risk from the operation of the proposed project is anticipated to be the major concern,” it said.

“Nevertheless, the findings of the air quality impact assessment revealed that the simulated incremental and ambient ground level concentration for the pollutants … are generally well below the acceptable limits during normal operation.”

The project site is tagged as PIPC Investor Lot 2 in the report.

“Minor impact to the surrounding receptors (residents) is predicted during the abnormal operation of the plant,” it said. “However, in considering that the affected receptor will be relocated under the PIPC development resettlement scheme, the impacts are hence negligible.”

Foreign investment

The report also said the development of KPTC-MIRPD would provide synergy with Petronas’ Refinery and Petrochemical Integrated Development and oil and gas tank facilities provider Malaysia Dialog Group.
“The proposed KPTC-MIRPD is estimated to bring in a foreign investment of approximately RM40 billion,” it said.

It estimated that about 40,000 jobs would be created during the construction stage and 3,000 employment opportunities when the plant is operational.

Pengerang residents have protested against the PIPC project, which involves acquisition of land totaling 8,094 hectares. They claim that the project would totally change their way of life and that the compensation offered was inadequate.