PRIME MINISTER YAB ISMAIL SABRI OFFICIATES PULAU BUNTING INTEGRATED DEVELOPMENT OF GAS SUPPLY CENTRE AND POWER PLANT IN YAN, KEDAH

YAN, KEDAH, 1 September 2022 – Prime Minister Yang Amat Berhormat Dato’ Sri Ismail Sabri bin Yaakob today has launched the Pulau Bunting Integrated Development of Gas Supply Centre and Power Plant in Yan, Kedah.

This project is part of an investment worth RM14.4 billion in the state of Kedah. This collaboration project between MMC Group and SKS Corporation Sdn Bhd is a testament
of MMC Group’s capabilities and expertise in developing economic projects that will not only benefit the people of Yan and Kedah but Malaysia as a whole.

Present to witness the opening ceremony were YAB Dato’ Seri Haji Muhammad Sanusi bin Md Nor, Menteri Besar of Kedah, Ministers, Members of Kedah State Executive
Council, YBhg Tan Sri Tajuddin Atan, Group Chairman of MMC Corporation Berhad, Federal Government Officials, Kedah State Government Officials and around 15,000 people from the surrounding area.

The Pulau Bunting Integrated Development of Gas Supply Centre and Power Plant Project in Yan is being implemented with strong support from the Federal Government and Kedah State Government as well as guidance from the Northern Corridor and Economic Region (NCER) aimed at developing the central region Kedah, especially Yan with holistic and high-tech development involving long-term investment from MMC Group which covers three main segments.

The first segment is the Yan Ship-to-Ship (STS) Hub, a coastal port dedicated to the cargo transfer of Liquefied Natural Gas (LNG) and petroleum products by Ship-to-Ship transfer within the Yan Port Limits. The gazetted area for Yan Port Limit is approximately 554 square kilometres, accounting for 20 nautical miles from the Yan coastline. Yan was chosen because of its strategic location at the northern entrance of the Straits of Malacca, which is the busiest trade route in the world with over 100,000 ships using these waters a year. Yan port limit is blessed with safe water depths of up to 30 metres that are suitable and safe to carry out STS activities and accommodate ships of various sizes at one time.

The third component is the construction of the LNG Regasification Terminal which will be known as RGT Yan. The construction of the Yan RGT will make it the natural gas entry gateway for the Northern region and the third in Peninsular Malaysia after the Sungai Udang RGT in the Central region and the Pengerang RGT in the Southern region. It will provide a Liquefied Natural Gas (LNG) retrenchment terminal in the form of a Floating Storage and Regasification Unit (FSRU), or Floating Storage Unit (FSU) docked near the Yan coast where LNG will be imported and converted into natural gas by the Yan RGT. Subsequently, this natural gas is channelled to end users such as industry, factories, hotels and many more.

All the components above will provide basic infrastructures such as electricity and natural gas supply for the Northern region, which is important to make Kedah an attractive investment destination and change the economic landscape of Yan which is currently dependent on the agricultural sector. It will accelerate the Kedah State Government’s efforts to bring large-scale development to the state as well as be a catalyst for development in the central and coastal regions of Kedah.

Apart from that, this project will also benefit the people of Kedah directly or indirectly by creating new economic opportunities and jobs. It will also give an advantage to Government Agencies such as the Muda Agricultural Development Authority (MADA) in increasing the productivity of agricultural production, especially paddy in the MADA area.

Yang Amat Berhormat Dato’ Sri Ismail Sabri bin Yaakob in his speech said, “The Federal Government is committed to supporting the implementation of the Pulau Bunting Integrated Development of Gas Supply Centre and Power Plant in Yan project which involves three main components to make this area as a new economic hub in the North region.”

“Similar to the Pengerang district in Johor, which was originally a fishing village that later developed rapidly as an industrial area, the people of Yan, especially the young, will also gain benefit from many new job opportunities.”

Through the expertise and technology possessed by the MMC Group, this project will also create more opportunities for local contractors and suppliers to participate. As a well-established company with extensive experience over the years, MMC Group will mobilise and leverage its global network which will spill a positive impact on many parties, especially small entrepreneurs throughout Kedah.

Pulau Bunting Integrated Development of Gas Supply Centre and Power Plant in Yan project will be implemented in compliance with all environmental regulations and standards to ensure it does not affect the natural ecosystem, agricultural activities and tourist attractions around the development area in Yan.

Under MMC Group, the company has also been involved in the construction of the Tertiary Irrigation System Development project under the Muda Agricultural Development Authority
(MADA). This project helps to create the perfect irrigation infrastructure so that farmers can enjoy and increase the productivity of rice production by five times in two years. Indirectly, this helps to increase the income and economic status of farmers. MMC Group as the main contractor serves as an umbrella contractor (Umbrella Contractor) in the implementation of this project and also provides mutual benefits to many local contractors and suppliers, where all work has been fully distributed to those who are eligible from a small Enterprise level, Class F up to Class Grade G7.

Under Maritime Corridor, MMC Group is ready to share the Group’s expertise and further accelerate the port sector in the state of Kedah by participating in the development of liquid bulk cargo terminals. Leveraging on the strategic position of the state, near the Malaysia-Thailand border and existing power generation assets, the development of the infrastructure will be a catalyst for sound investment in the Northern Corridor Economic Region (NCER). In addition, the development of strategic maritime assets will offer added value and a multiplier effect to the economy of Kedah.