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Bureau of Mines / Minerals yearbook mineral industries of Asia and the Pacific 1992
Year 1992, Volume 3 (1992)

Wu, John C.
Malaysia,   pp. [248]-258 ff. PDF (2.7 MB)


Page 254

254  THE MINERAL INDUSTRY OF MALAYSIA—1992under way to extend the
gas
pipeline northward from Kertek on the east coast. The fourth 7-Mm3/d gas
processing plant under PGU-III was under construction by Stone and Webster
of the United States in 
1992. 
 In August, PETRONAS awarded a 
$240 million contract to a consortium 
composed of Pernas Construction Sdn. 
Bhd. of Malaysia, Sumitomo Corp. of 
Japan, Stone and Webster of the United 
States, and Hyundai Engineering and 
Construction Co. of the Republic of 
Korea. The contract was for construction 
of a 2.8-Mm3/d gas processing plant in 
Bintulu, Sarawak, to be completed by 
1995. 
 Petroleum.—Malaysia's crude oil production rose to an average
of 661,000
bbl/d in 1992 from 652,100 bbl/d in 1991. Malaysia's crude oil production
capacity including condensate stood at an average of 690,000 bbl/d in 1992.
Production of crude oil in 1992 was from 32 oilfields with 43 offshore platforms
operated by PETRONAS Carigali Sdn. Bhd. , the upstream arm of PETRONAS, and
three foreign contractors, EPMI, SSB, and SSP. 
 In 1992, export earnings from crude petroleum dropped by 5.4% to $3.5 billion
resulting from lower oil prices and decreased exports. Singapore, the Republic
of Korea, Japan, and the United States remained the major buyers of the Malaysia
crude petroleum in 1992. Malaysia continued to import about 22,000 bbl/d
of heavy crude oil in 1992 to meet the requirement of the domestic oil refineries.
 The second stage of the Dulang development project involving installation
of the Dulang satellite was completed in 1992. The third stage involving
development of PETRONAS' western area will begin in 1993 and be completed
in 1994. Crude oil production from the Dulang waxy oilfield reached an average
of 40,000 bbl/d in September. In April EPMI announced that it planned to
spend $490 million for installing three platforms in the Guntong Field offshore
Terengganu in 1993 and 1994. 
 During the past 2 years, several 
significant new oil and gas discoveries ~ were made by foreign production-sharing
contractors. These significant discoveries included EPMI's Abu-1, Lukut North-i,
Lawang-1 and Serudon-1 and Hamilton Oil Corp.'s Bunga Orkid-i, Bunga Pakma-1,
and Bunga Raya-1, all offshore Terengganu in South China Sea; Occidental
Petroleum Corp.'s Jintan-i and Jintan-2, Taiwan's Chinese Petroleum Corp.
' 5 Acis-2, Nippon Oil Co. Ltd. ' s Layany-i, and Elf Aquitaine Malaysia's
Jamalulalam 1 and 2, all offshore Sarawak. As a result of new oil and gas
discoveries, Malaysia's estimated proven reserves of crude petroleum and
natural gas increased to 3.7 billion barrels and 1.92 trillion m3, respectively,
from 3 billion barrels and 1 .67 trillion m3, respectively, in 1991.i2 
 PETRONAS' plan to build a 100,000bbl/d sour crude refinery in Malacca suffered
another setback when Idemitsu Kosan Co. Ltd. of Japan withdrew from the $1.9
billion project because of disputes with PETRONAS in September. In July,
Idemitsu Kosan Co. Ltd. of Japan and Samsung Trading Co. Ltd. of the Republic
of Korea reportedly reached an agreement with PETRONAS for Idemitsu Kosan
and Samsung Trading to take 40% and 15% stakes in the project.'3 
Reserves 
 Malaysia is estimated to have more than 15 % of known world tin reserves.
The estimated ilmenite and monazite reserves associated with tin reserves
are substantial. Ore reserves of bauxite, copper, natural gas, petroleum,
and other industrial minerals are small but considered significant for the
area. Malaysia was ranked 22d in worldwide oil reserves and 14th in natural
gas reserves. Reserves of major mineral commodities are shown in table 3,
according to the Malaysian Government and industry sources. (See table 3).
INIRASTRUCTURE 
 Malaysia's existing highways, railroad system, and port facilities are adequate
to transport most of the nonferrous mineral 
products to the ~ domestic and overseas ~ markets. As part of PGU-II, construction
of two new gas processing plants and upgrading of export terminals at Kerteh
were completed in 1992. A consortium formed by PETRONAS, two local companies,
and two Japanese firms began construction of a gas-reticulation system covering
the States of Selangor and Johore. The Government began design and engineering
studies on construction of a 530-km gas pipeline network for extending the
730-km gas pipeline northward from Meru in Klang to Bukit Keteri in Perlis
on the west coast of peninsular Malaysia and northward from Kertek on the
east coast under the PGUIII project in 1992. Under the Government plan, the
PGU-III project, which also included building one more new gas processing
plant, was scheduled for completion in 1995 at an estimated cost of more
than $1 billion. 
 To accommodate the transportation needs of the new growing industrial areas
and in the southern Johore State, the 924kiii North-South Expressway along
the west coast of peninsular Malaysia connecting Thailand in the north and
Singapore in the south was expected to be completed by 1993. According to
the Malaysian Highway Authority, Federal route No. 2 connecting Kuala Lumpur
on the west coast to Kuantan on the east coast was being expanded and another
new East-West Expressway was under planning. In Johore, construction of a
new second bridge for crossing to Singapore and a 43-km highway linking the
North-South Expressway to western Singapore was expected to begin in 1993.
 Malaysia's installed electricity capacity was 5,400 MW, and total demand
was about 4,200 MW in 1991. Demand for electricity had been increasing at
an average annual rate of about 1 1 % as a result Of the growing manufacturing
sector over the past 5 years. To cope with the increasing demand for electricilty,
Tenaga Nasional, the semiprivate national electrical power company, announced
in early 1991 that it plans to invest $365 million for purchasin,g seven
gas-powered turbines to raise Malaysia's total electricity- 


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