The RM14.4b integrated development project will help change the economic landscape of Yan district which is currently dependent on the agricultural sector

by FAYYADH JAAFAR / pic courtesy of MMC

PRIME Minister (PM) Datuk Seri Ismail Sabri Yaakob (centre) officiated the launching of Pulau Bunting integrated development of gas supply centre and power plant in Yan, Kedah yesterday.

The RM14.4 billion Pulau Bunting integrated development project will help change the economic landscape of Yan district which is currently dependent on the agricultural sector.

“The development of the project will make Yan akin to Johor’s Pengerang district which used to be a fishing village but is now a rapidly developing industrial area.

“I believe Yan will also develop rapidly into an industrial area in the near future, not only the development that can be enjoyed but the residents of Yan, especially the young, will also benefit from the many job opportunities,” he added.

It is a project jointly undertaken by MMC Group Bhd and SKS Corp Sdn Bhd. 

Also present were Kedah Mentri Besar Datuk Seri Muhammad Sanusi Md Nor, MMC Group chairman Tan Sri Tajuddin Atan, MMC Corp Bhd group MD Tan Sri Che Khalib Mohamad Noh and several Cabinet ministers.

“The federal government is committed to supporting the implementation of this project which involves three main components to make this area a new economic hub in the north,” said Ismail Sabri.

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 STS transfer within the Yan Port Limits. 

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. 

The second segment involves the construction of a combined cycle gas turbine power plant with a capacity of 1,600MW. This plant has the potential to be a catalyst for economic development in Kedah, especially in Yan. The construction of this plant will be the basic infrastructure to support industrial development not only in this area but also in the entire Kedah.

The third component is the construction of the LNG regassification terminal (RGT), which will be known as RGT Yan. The development 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 an LNG retrenchment terminal in the form of floating storage and regassification unit or floating storage unit, docked near the Yan coastline 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.

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 have a positive impact on many parties, especially small entrepreneurs throughout Kedah.

Additionally, 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.

Under MMC Group, the company is also involved in the construction of the Tertiary Irrigation System Development project under Mada.

This project helps to create the 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 in the implementation of the Pulau Bunting integrated development project. 

Under the 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.

In addition, the development of strategic maritime assets will offer added value and a multiplier effect to the economy of Kedah.