This article first appeared in The Edge Financial Daily on September 13, 2018

KUALA LUMPUR: 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 not to proceed with the Multi-Product Pipeline (MPP), Trans-Sabah Gas Pipeline (TSGP) projects and another pipeline project linking the state of Melaka to a Petronas refinery and petrochemical plant in Johor.

In a statement yesterday, 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.

 The government had halted the multi-billion ringgit projects, citing exhorbitant costs, after taking over the administration following the May 9 general election.