Merapoh is currently building a $US10 billion refinery project in Yan, Malaysia, that will eventually be backed by China National Petroleum Company (CNPC). The refinery is due to be completed by 2014, and could be linked to the pipeline in order to transport crude oil to East Asia from the Middle East more quickly.

Mr Ramli told Reuters that Chinese investors “have already conducted a study and spoken to China, Thailand and Malaysia about it.”

He said Yan in Kedah, Malaysia, would also be the first entry point for crude oil from the Middle East.

“Yan is not a busy route and has a wide span, which is easy for vessels to manoeuvre,” Mr Ramli said.

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Saudi Aramco will reportedly supply the refinery with crude, while CNPC has agreed to take oil products from the Malaysian refinery for 20 years.