KUALA LUMPUR (Dec 13): Benalec Holdings Bhd has terminated two Memoranda of Understanding (MoUs) as parties involved are unable to conclude on the definitive agreements on Pengerang Maritime Industrial Park (PMIP) projects.

The marine construction specialist told Bursa Malaysia on Wednesday (Dec 13) that it terminated the first MOU with Shanxi Construction Investment Group Co Ltd (SCIG), Malaysian Palm Oil Board (MPOB) and Institute of Coal Chemistry, Chinese Academy of Sciences on the production of second-generation biodiesel and biojet fuel in Malaysia.

To recap, Benalec had in December 2021 signed an agreement with the trio to exchange technical expertise for the preparation and finalization of the feasibility and technical evaluation report, which will be incorporated into the proposal for the production plant in PMIP.

“The termination is effective immediately and will have no financial impact to the company and its subsidiaries for the financial year ending December 31, 2023 (FY2023),” it shared.

Meanwhile, in a separate local bourse filing, Benalec also announced the termination of its second MOU with SCIG on the development and execution of a site location plan at PMIP for a proposed development of palm oil biodiesel plant in Malaysia.

Similarly, Benalec said the termination of this MOU will not have any financial impact to the company.

Shares in Benalec closed unchanged at 10 sen, giving it a market capitalization of RM103.16 million.