KUALA LUMPUR (Feb 29): Petroliam Nasional Bhd (Petronas) and Petronas Gas Bhd (PetGas) have together demanded RM46.75 million in damages from ACE-Market listed MClean Technologies Bhd's two subsidiaries for discharging noxious and toxic effluents that resulted substantial damage to the former's pipeline.

The sum demanded is more than MClean's market capitalisation of RM39.33 million based on yesterday's closing of 22 sen.

In a filing with Bursa Malaysia, MClean said its subsidiaries DWZ Industries Sdn Bhd and DWZ Industries (Johor) Sdn Bhd had been served with a letter of demand by Petronas and PetGas through their solicitors.

The letter claimed that MClean's two subsidiaries have made the unlawful construction and/or installation of a 50-metre piping structure on lands in Mukim Plentong, Johor.

The piping is connected to DWZ's premises at Ulu Tiram, Johor.

Petronas and PetGas also pointed out that the piping structure discharge certain noxious and toxic effluents onto the lands, which has caused substantial damage to PetGas' pipeline.

"Due to the above, Petronas has demanded for a sum of RM46.75 million from the company (MClean) and/or its subsidiaries. Failing which, Petronas will commence legal proceedings against the company and/or its subsidiaries to recover all sums due and additionally liable for interest and costs," the filing read.

MClean said it has engaged a solicitor to look into the matter and will make further announcement on the development of it.