Terengganu may set up a toxic waste disposal centre in the state to cut the risk of untoward incidents while transporting the waste by road to Negeri Sembilan as done currently, said Menteri Besar Idris Jusoh today.

He said the state government is conferring with oil giant Petronas on the prospect of setting up the centre.

This was among several issues raised during a meeting between the two sides yesterday, which was also attended by Petronas president and chief executive officer Hassan Marican.

This is the first meeting between the state government and Petronas since the state was re-captured by the Barisan Nasional (BN) in the March 21 election.

Terengganu was previously ruled by opposition party PAS, which is embroiled in a legal tussle with Petronas for withdrawing its oil royalty payment during the former's one-term tenure in the state.

The company, often regarded as the government's cash cow, had been paying royalty to the BN government prior to the state being seized by PAS in 1999.

"We will meet again to discuss in detail on how toxic waste from the petrochemical industry in this oil town need not be brought far away," Idris was quoted as saying in a Bernama report.

Commercial flights

Meanwhile, Hassan said at present toxic waste from Petronas' petrochemical industry in Terengganu and Pahang are being disposed off at the toxic waste disposal centre in Bukit Pelanduk, Negeri Sembilan.

He added that by having such a centre in Terengganu, untoward incidents can be avoided when the waste is being transported by road to Negeri Sembilan.

In another development, Idris said studies needed to be done to re-introduce the Kerteh-Kuala Lumpur-Kerteh flights as there was demand.

He said the state government welcomed proposals from interested parties to provide the air service.

At present, the airstrip in Kerteh, built by Petronas, is being used only to fly the company's employees from here to the oil rig in open sea.

The menteri besar said the state government also proposed to discuss with Petronas the possibility of developing petrochemical-based small-and medium-scale industries and a new township here.