(EnergyAsia, December 9 2011, Friday) — Malaysia’s Benalec Holdings Berhad and Singapore’s Rotary Engineering Limited said they have signed a memorandum of understanding (MOU) to develop an independent deepwater terminal in Malaysia to store, handle and blend oil products for the international markets.
To be built on a reclaimed 250-acre site in Tanjung Piai at the south-western tip of Johor state, the proposed terminal will start off with a one million cubic metres (cbm) capacity that will be expanded to three million cbm. The integrated storage facility will include deepwater jetty facilities capable of handling very large crude carriers (VLCCs) plying international shipping routes along the Straits of Malacca that serve the oil trade between the Middle East and East Asia.
Benalec, an investment holding company whose subsidiaries provide marine construction services, and Rotary Engineering, which serves the energy industry, said they will undertake a technical feasibility study of the project before forming a joint venture company to own and develop it as well as other storage projects. The new company will also exclusively undertake the promotion of Tanjung Piai as an oil and petrochemicals terminal hub.
Vincent Leaw, Benalec’s managing director, said:
“We are delighted to have Rotary Engineering on board with us in our maiden foray into the oil and gas and petrochemical industry. Tanjung Piai is very well positioned to complement the region’s growth in the oil and gas industry, and to tap on the growing demand for the storage and distribution of petroleum and petrochemical products in Asia.”
Roger Chia Kim Piow, Rotary Engineering’s chairman and managing director, said
“We are excited to provide more value added services to our clients through this strategic partnership with Benalec. With Tanjung Piai’s close proximity to Jurong Island, we see much synergy between Singapore and Johor in developing this area into an even larger international petroleum hub.”
Benalec’s subsidiary companies provide marine construction services including land reclamation, dredging and beach nourishment, coastal protection, shore protection, breakwater construction, pre-bore and marine piling, and construction of marine structures, bridges, jetties, ports and other offshore and ancillary structures.
Its ancillary services include vessel-chartering and support, ship repair, maintenance and building, fabrication and refurbishment activities.
Rotary Engineering is a leading provider of engineering, procurement and construction services specialising in the oil and gas industry.