(EnergyAsia, September 29) — Malaysian oil trading and logistics group KIC Oil Terminals Sdn Bhd (KIC) is beefing up its capacity to become a player in Southeast Asia’s oil supply chain.

From next month, it plans to trade and supply 160,000 cubic metre of fuel oil per month from its newly acquired Westport terminal in Klang city. KIC recently bought over Westport Bunkering Services Sdn Bhd (WEBS), the operator of Westport, from Chevron’s FAMM-Indah Sdn Bhd which previously handled 60,000 cubic metres of fuel a month.


The bulk of that growth will come from KIC’s new strategic alliance with Thai state oil trading company company PTT International Trading Pte Ltd that would boost WEBS’s handling volume by 60,000 to 80,000 cubic metres a month, said CEO Abdul Rashid Mohamad Isa Al-Qadiry.

 

KIC started operations its Westport operations on September 16 after buying over the 196,000 cubic metre storage facility for US$3 million.

Mr Rashid said his company plans to invest another RM8.5 million in building pipelines to connect the facility to an existing jetty at the terminal.


In addition to WEBS, KIC has been operating a a floating fuel oil processing terminal of 260,000 cubic metres storage capacity at the Port of Tanjung Pelepas.


Mr Rashid also revealed that KIC has obtained US$300 million in trade finance facility to support its trading activities.