Discuss on the capital costs

Reference no: EM133659701

Question: The Multi-Product Pipeline (MPP), a 600km multi-product petroleum pipeline connecting Melaka and Port Dickson with Jitra, Kedah which costs RM5.35 billion, and the Trans-Sabah Gas Pipeline (TSGP), a 662km gas pipeline connecting the Kimanis Gas Terminal with Sandakan and Tawau, costing RM4.06 billion is currently under construction.Both projects amounting to RM9.41 billion were awarded to China Petroleum Pipeline Bureau (CPPB) on Nov 1, 2016 by finance ministry (MoF)-owned Suria Strategic. At present, there is the Klang Valley Distribution Terminal (KVDT) MPP that is operated by a joint venture comprising Petronas Dagangan Bhd and Shell Malaysia Trading, which links up refineries in Melaka and Port Dickson with Dengkil, so petroleum products are currently transferred up north via tanker trucks. So, there is a need for a pipeline to connect beyond that point. You may want to refer to the map of Malaysia in answering the questions. Discuss on the capital costs as well as the return on investments in terms of savings from having such a pile line.

Reference no: EM133659701

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