KUALA LUMPUR: Bintai Kinden Corp Bhd has formed a 51:49 joint venture (JV) with Petro Flanges & Fittings Sdn Bhd (PFF) to supply materials and equipment to the local and international oil and gas (O&G) industry including the Middle East via the distributorship channel of PFF.

       Bintai Kinden, in a statement, said the companies would set up the JV, Bintai Energy Sdn Bhd (Bintai Energy), to capitalise on the expected O&G industry recovery as capital investments pick up at home and abroad.

       Bintai Kinden’s wholly-owned unit Kejuruteraan Bintai Kindenko Sdn Bhd (KBK), has today entered into a special purpose vehicle and shareholder’s agreement (SPV Agreement) with PFF for the strategic collaboration.

       Under the SPV Agreement, KBK, which specialises in mechanical and electrical engineering services, shall be responsible to manage Bintai Energy, as well as providing the necessary funding for the venture.

       PFF will be handling the marketing work for Bintai Energy, tapping into its experience in the trading of flanges in oilfield industry plant, ship building and water treatment industries.

       It said PFF had past record in supplying pipes flanges fittings valves and other oil and gas equipment to end clients locally and abroad for an approximate aggregated order book value of more than RM60mil Bintai Kinden executive director Azri Azerai said the JV was well-position to ride the expected rise in demand for O&G equipment and materials on the back of rising level of activities to address the gap between supply and demand in the sector.

       “The recent energy crunch which rose on the back of the Covid-19 pandemic and the global net-zero carbon transition has shown that O&G remains a critical component of the global energy and manufacturing landscape.

       “Bintai Kinden and PFF each bring to the table the experience in our respective operations to tap into the industry upside, and complement the existing earnings growth in the Company,” he added.