Malaysia: Benalec to forge ahead with Tanjung Piai reclamation project

M. HAFIDZ MAHPAR The Star 15 Jun 15;

KUALA LUMPUR: Benalec Holdings Bhd is going ahead with the reclamation of about 1,000 acres off the coast of Tanjung Piai despite the expiry of the binding tripartite term sheet signed with The State Secretary, Johor (Inc) and 1MY Strategic Oil Terminal Sdn Bhd.

However, Benalec told Bursa Malaysia on Monday that it would seek other buyers for the land.

Earlier, the land was reportedly slated for 1MY to build a crude oil and petroleum storage facility in a RM21bil joint-venture with the United Arab Emirates. Benalec was represented by Spektrum Kukuh Sdn Bhd, a 70% owned subsidiary of its unit Tanjung Piai Maritime Industries Sdn Bhd,

In the latest announcement, Benalec said it had always been the group’s intention to realise its plans of reclaiming the 1,000 acres irrespective of the ultimate outcome of the said term sheet.

“To this end the group is targeting the commencement of reclamation works in Tanjung Piai to take place sometime in August 2015,” it said.

Benalec said that the group was now at liberty to deal with the 1,000 acres to be reclaimed “in ways consistent with the group’s business strategy.”

“One immediate option which the group will pursue is the resumption of engagement with a number of potential buyers who had previously expressed their strong interest in acquiring portions of the subject 1,000 acres of land; the group had to keep these serious enquiries in abeyance pending the progress or otherwise of the said term sheet,” it said.

It is still not known why the petroleum hub project was cancelled. The Department of Environment (DOE) had already approved the reclamation work for the project.

Benalec shares have fallen from 63 sen on Thursday (the day it announced the expiry of the term sheet) to close at 56.5 sen on Monday.