TS Asia Green Infrastructure and Chinese SOEs Launch US$4 Billion Project Neptune in Lahad Datu

KOTA KINABALU: TS Asia Green Infrastructure Sdn Bhd, in collaboration with leading Chinese State-Owned Enterprises (SOEs), today officially launched Project Neptune, a transformative US$4 billion energy infrastructure initiative at the Palm Oil Industrial Cluster Port (POIC) Lahad Datu.

This landmark project aims to establish a world-class oil storage terminal and refinery, further strengthening Malaysia’s position as a strategic energy hub in the region.

The launch event, held at Hyatt Regency Kinabalu Hotel, was officiated by Finance Minister Datuk Seri Panglima Masidi Manjun, representing the Chief Minister, who witnessed the official exchange of the Land Lease and Oil Terminal Development Agreement between POIC Lahad Datu, represented by its CEO, Datuk Fredian Gan, and TS Asia Green Infrastructure CEO and Chairman of Sofos Group, Mr. Albert Tan.

Spearheaded by TS Asia Green Infrastructure Sdn Bhd, an entity managed by Singapore-incorporated Sofos Group, Project Neptune is in partnership with renowned Chinese SOEs, including:

China Petroleum Pipeline Engineering Co. Ltd. (CPP) – A subsidiary of China National Petroleum Corporation (CNPC), specializing in the construction and engineering of oil and gas pipelines. CNPC Group, through its publicly traded subsidiaries, is listed on both the Hong Kong Stock Exchange and the Shanghai Stock Exchange, with a market capitalization of approximately US$200 billion.

China Communications Construction Company (CCCC) – A prominent Chinese state-owned enterprise specializing in infrastructure construction and design. It is publicly traded on both the Hong Kong Stock Exchange and the Shanghai Stock Exchange, with a market capitalization of approximately US$18 billion.

The Eleventh Metallurgical Construction Group Co. Ltd. (EMCC) – Recognized as one of China’s Top 500 Enterprises, EMCC holds top-tier qualifications in general contracting for construction projects and is renowned for its industry excellence.

 Sinopec Petroleum Engineering Construction Co. Ltd. (Sinopec Engineering) – A subsidiary of Sinopec Oilfield Service Corporation (SSC), which in turn is a subsidiary of China Petrochemical Corporation (Sinopec Group), one of the world’s largest oil and gas companies. SSC is publicly traded on the Hong Kong Stock Exchange, with a market capitalization of approximately HKD 10 billion.

These industry leaders bring extensive expertise in offshore marine and energy infrastructure, ensuring world-class execution, reliability, and efficiency.

Project Neptune will be executed in three phases:

Phase 1: Investment of US$0.9 billion to develop 1.9 million cubic meters of storage capacity. This phase will feature 22 specialized storage tanks, a state-of-the-art jetty with multiple berths for large tankers, and essential marine support facilities. A total of 110 acres of land has been secured for this stage.

Phase 2: Expansion of the terminal with an additional 2.1 million cubic meters of storage at an estimated cost of US$1.1 billion.

Phase 3: Further expansion with 4 million cubic meters of storage and the development of a high-tech refinery, requiring a projected US$2.1 billion investment.

At the launch event, Mr. Albert Tan emphasized the project’s significance, stating, “Project Neptune is more than just an infrastructure investment – it represents a strategic leap forward for Malaysia’s energy sector. With our world-class partners and the strong support of local stakeholders, we are committed to delivering a sustainable, high-capacity oil storage and refining hub that will enhance regional energy security, attract global investment, and create new economic opportunities.”

The execution of Project Neptune will be led by internationally acclaimed EPC contractors with a proven track record of delivering large-scale energy infrastructure projects for global industry leaders such as China Communications Construction Company (CCCC) and The Eleventh Metallurgical Construction Group Co. Ltd. (EMCC).

Moreover, the project aligns with Malaysia’s sustainability goals by integrating advanced environmental management practices and adopting cutting-edge technology to minimize its carbon footprint.

With its strategic location at POIC Lahad Datu, Project Neptune is set to enhance Malaysia’s energy storage and refining capabilities, further positioning Sabah as a key player in the global oil and gas supply chain. The project is also expected to generate thousands of jobs, attract foreign direct investment, and stimulate industrial growth in the region.

Project Neptune is poised to be a game-changer in Southeast Asia’s energy sector. By fostering strategic international partnerships, utilizing cutting-edge infrastructure, and committing to sustainable development, TS Asia Green Infrastructure and its partners are setting new industry benchmarks for excellence and innovation.-pr/BNN