KUALA LUMPUR (Sept 12): China Petroleum Pipeline Engineering Co., Ltd (CPP) said it understands and respects the Malaysian Government's decision to cancel several projects was due to economic and financial reasons.
The government has decided to not to proceed with the Multi-Product Pipeline (MPP), Trans-Sabah Gas Pipeline (TSGP) projects and another pipeline project linking the state of Malacca to a Petronas refinery and petrochemical plant in Johor.
In a statement today, CPP said it will proceed to discuss with the asset owner / Malaysian Government for a fair and equitable compensation for the cancellation of the projects.
“As a result of the cancellation, CPP will re-assign staff, local and foreign, previously designated to the pipeline projects to other ongoing CPP projects in Malaysia and in other parts of the world.
“CPP hopes to work with the Malaysian Government in the future pipeline project,” it said.
The government had halted the multi-billion ringgit projects, citing exhorbitant costs, after taking over the administration after the May 9 general election.