(EnergyAsia, December 22 2014, Monday) — Dutch oil and logistics firm Royal Vopak and two Malaysian firms, state-owned Petronas and listed Dialog Group, have signed a shareholders agreement to jointly develop an oil storage terminal for the planned Pengerang Integrated Complex (PIC) in Malaysia’s Johor state.
The terminal, to be developed on a 63.5-hectare plot next to the site of the existing Pengerang Independent Terminal, will have the capacity to store 2.1 million cubic metres of crude, refined products, petrochemicals and liquefied petroleum gas (LPG). It is expected to be completed in time to serve the Petronas-led oil refinery-petrochemical complex that is due to start up in 2019.
The terminal will include a 24-metre deepwater jetty facility capable of handling Very Large Crude Carriers (VLCC) as well as berths for Q-Max-sized vessels of 266,000-cubic metre capacity to unload and reload liquefied natural gas (LNG) cargoes.
In separate statements issued last week, the partners said the agreement was signed by their respective subsidiaries, PRPC Utilities and Facilities Sdn Bhd of Petronas, Dialog Equity (Two) Sdn Bhd and Vopak Terminal Pengerang BV.
“This agreement will pave the way for PRPC and its partners to own and develop the Pengerang Terminal Phase 2 project. The agreement cements our commitment for the successful development of PIC,” said PIC vice president and venture director, Juniwati Rahmat Hussin.
Vopak, which owns a 25% in the project, described the terminal as a logistical centre linked by pipelines to support feedstock and product flows among the petrochemical facilities and port facilities within the Pengerang industrial complex.
“We are very proud that we will, together with our partners, serve this important refinery and petrochemicals complex in Malaysia. Both the independent terminal, that started operations last summer, and this new industrial terminal very well fit in our strategy,” said Vopak chairman and CEO Eelco Hoekstra.
“The location along one of the world’s busiest shipping lanes and its proximity to international trading hub Singapore makes this terminal very well positioned to service the Southeast Asia region.”
Vopak is the world’s leading independent oil and petrochemical storage services provider while Dialog Group supplies technical services to the oil, gas and petrochemical industry.
In Malaysia, Petronas, Vopak and Dialog jointly own the Kertih Terminals Sdn Bhd in Trengganu state while Dialog and Vopak along with Johor state agency SSI are partners in the recently commissioned Pengerang Independent Terminals Sdn Bhd (PITSB) in Johor. When completed, PITSB will own and operate tanks to store 1.3 million cbm of independent storage for crude and oil products.
The Petronas-led Pengerang Integrated Complex (PIC) project comprises the Refinery and Petrochemical Integrated Development (RAPID) complex and its associated facilities including a cogeneration power plant, a regasification terminal, an air separation unit, a raw water supply project, a liquid bulk terminal as well as centralised shared utilities.
Developed on a 2,500-hectare site in Pengerang, PIC forms part of the Johor state’s Pengerang Integrated Petroleum Complex (PIPC) launched as part of Malaysia’s Economic Transformation Programme (ETP). RAPID is estimated to cost US$16 billion while the associated facilities will involve an investment of about US$11 billion.