(EnergyAsia, March 30 2011, Wednesday) — Shell Malaysia said it has begun building a RM810-million diesel processing unit at its refinery in Port Dickson on the west coast of peninsular Malaysia. (US$1=RM3).

The company said the new unit will enable the refinery to vary its feedstock options, increase diesel production and improve its profit margin. It was one of the three Shell Malaysia projects worth a combined RM5.1 billion for 2011 recently announced by the Malaysian Prime Minister.

Shell Malaysia’s other investments for the year include the expansion of its MDS wax plant in Bintulu and the Gumusut Kakap deepwater development project off Sabah state. The three projects will create approximately 1,600 jobs for local contractors during their construction phase.

Rozano Saad, Shell Refining Company’s managing director, said the refinery’s expansion demonstrates the company’s continuing confidence in Malaysia where it has been operating for almost 120 years.

He said: “Malaysia is one of Shell’s heartlands.  We are one of the early investors in the country’s oil and gas industry; the diesel processing unit is a demonstration of our continued investment.”