Displaying items by tag: ILPP

Malaysia: Makin Teguh and Borneo Oil have held a ceremony to mark the firing up of the kiln at the 0.23Mt/yr ILPP cement plant being built in Sabah. The new plant is next to a limestone quarry owned by Borneo Oil and it is set to further benefit from the oil company’s other limestone assets via long term supply contracts, according to the Borneo Post newspaper. Borneo Oil increased its stake in Makin Teguh to 38% in May 2022.

A China-based supplier has built the new plant. It includes a waste heat recovery (WHR) unit and it reportedly the first integrated cement plant in Malaysia to use alternative fuels such as heavy fuel oil derived from refined recovered oils, palm kernel shells and bio char.

Malaysia: Borneo Oil has increased its investment in the upcoming ILPP cement plant in Sabah to US$12m. The oil company has signed a deal to buy a 19.5% stake in the cement company from Makin Teguh. Borneo Oil previously bought shares from Makin Teguh in late 2021. The company said it is making the move to benefit from a positive outlook for the cement sector in the Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area. It estimates that Sabah has a demand of 1.2 – 1.4Mt/yr of cement.

Borneo Oil says it is the largest private owner of limestone reserves of cement grade quality in Sabah. The ILPP plant is located next to a limestone quarry owned by Borneo Oil and a long-term supply contract for the unit is already in place. The ILPP plant will have a cement production capacity of 0.2Mt/yr when it is completed. Commissioning of the plant is scheduled for the third quarter of 2022. The owners say it will be the first integrated plant in Sabah. It will also be the first micro-cement plant in Malaysia that will use heat recovery and a mixture of fuels, including heavy fuel oil and biomass such as a palm kernel shells.