Malaysian trading company Ben Rautin Sdn Bhd has announced plans to develop a cluster of oil tank farms and a port in the coastal city of Lufeng in southern China.
According to Ben Rautin founder and managing director Ismail Rautin Ibrahim this project is expected to require an initial capital investment of about $3 billion.
Speaking to Malaysia's Business Times, Ibrahim said that the port and tank farms will be an extension of its $5 billion refinery and petroleum-based industrial park project in the same city.
Ben Rautin had in August last year signed a memorandum of understanding with Lufeng mayor Li Hanlin securing 10 square kilometres (km²) of land for the development of the refinery and petrochemical facilities.
“The port will not only complement our industrial park but will also serve the surrounding areas in the southern regions of China,” he said.
Ibrahim indicated that Ben Rautin wants to “develop the area into a petroleum hub for southern China.”
According to Ibrahim, Lufeng city authorities have given approval to Ben Rautin to acquire 20 km² of land for the development of the port and tank farms.
“With the acquisition of 20 km² of land, we now have in total a 30 km² site to develop an industrial park, tank farms and a port in Lufeng,” he said
With regards to cost funding Ibrahim said that discussions were currently underway with global oil players, “including Middle East countries as well as from China to supply crude oil and financing.”
Ibrahim also said that “it would take a long time to see the physical structures of the projects as it is not always an easy task to get permits.”
“For example, international oil majors and even Chinese state-owned companies take about eight years just to obtain the licence to start building an oil refinery in China,” he added.
According to Ibrahim the Lufeng City authorities will be responsible for obtaining all necessary licenses and permits.
“They will assist to put the projects on a fast track,” he said.
According to Ben Rautin founder and managing director Ismail Rautin Ibrahim this project is expected to require an initial capital investment of about $3 billion.
Speaking to Malaysia's Business Times, Ibrahim said that the port and tank farms will be an extension of its $5 billion refinery and petroleum-based industrial park project in the same city.
Ben Rautin had in August last year signed a memorandum of understanding with Lufeng mayor Li Hanlin securing 10 square kilometres (km²) of land for the development of the refinery and petrochemical facilities.
“The port will not only complement our industrial park but will also serve the surrounding areas in the southern regions of China,” he said.
Ibrahim indicated that Ben Rautin wants to “develop the area into a petroleum hub for southern China.”
According to Ibrahim, Lufeng city authorities have given approval to Ben Rautin to acquire 20 km² of land for the development of the port and tank farms.
“With the acquisition of 20 km² of land, we now have in total a 30 km² site to develop an industrial park, tank farms and a port in Lufeng,” he said
With regards to cost funding Ibrahim said that discussions were currently underway with global oil players, “including Middle East countries as well as from China to supply crude oil and financing.”
Ibrahim also said that “it would take a long time to see the physical structures of the projects as it is not always an easy task to get permits.”
“For example, international oil majors and even Chinese state-owned companies take about eight years just to obtain the licence to start building an oil refinery in China,” he added.
According to Ibrahim the Lufeng City authorities will be responsible for obtaining all necessary licenses and permits.
“They will assist to put the projects on a fast track,” he said.