(EnergyAsia, April 30 2012, Monday) — A Malaysian-Dutch consortium expects to complete the RM1.9-billion first phase of its oil storage terminal in Johor state by early 2014 that will include Southeast Asia’s first independent facility to handle crude oil. (US$1=RM3.05).
Owned by Malaysian engineering company Dialog Group, Royal Vopak of the Netherlands and the Johor state government, the 1.3-million cubic metre Pengerang Independent Deepwater Petroleum Terminal will compete as well as synergise with Singapore, home to Asia’s largest independent oil storage operations.
About a third of the capacity or 430,000 cubic metres will be use for crude oil storage, and the rest for products like gasoline, gasoil and jet kerosene.
The consortium is already planning to add another million cbm of capacity to meet the region’s growing demand for oil storage and blending.
Dialog and Vopak have formed a 51/49 joint-venture company to own a 90% stake in the terminal which includes deepwater jetty facilities of up to 24 metres depth to accommodate long-haul Very Large Crude Carriers (VLCCs).
The remaining 10% is held by State Secretary Johor Incorporated (SSI) on behalf of the Johor state government, which is planning to turn Pengerang town on the southeastern coast of Johor into a major regional oil and chemicals trading and storage hub.
The Malaysian government has announced an ambitious long-term plan to turn part of Johor state into a major economic zone with integrated oil-chemical manufacturing and trading as an anchor activity on a 91-sq km plot.
The Pengerang oil terminal will support the Iskandar development programme alongside state energy Petronas’s plan to build a RM60-billion oil refinery-petrochemicals complex. The 300,000 b/d refinery could start up as early as 2016.
Speaking at the April 26 groundbreaking ceremony of the Pengerang storage terminal, Johor’s Chief Minister Abdul Ghani Othman said:
“We are one step closer to realising our vision of becoming a regional player in the storage, processing and trading of oil.“Oil and gas has served us well as a nation. It is time to leverage on our unmatched natural and strategic advantages to position South Johor as a world leader in this booming industry.”
Dialog Group executive chairman Ngau Boon Keat said:
“Pengerang is strategically located near major international shipping lanes, has 24 metres deepwater port facilities and is close to petroleum production and demand centres in the Middle East, India and China.
“Pengerang has what it takes to grow to become a large oil refining and petrochemicals manufacturing centre and also an oil, petrochemical and LNG trading hub within the next five to 10 years.”
Vopak Asia President Patrick van der Voort said:
“The Pengerang terminal marks Vopak’s third presence in Malaysia, with two other terminals located at Kertih and Pasir Gudang. As the world’s largest independent provider of conditioned storage facilities for bulk liquids with 84 terminals in 31 countries worldwide, we have extensive expertise and experience managing terminals in different markets.”
Asia continues to grow in importance for Vopak. In FY2011, the company’s Asia division reported a 12% rise in operating profit to 185.3 million euro while revenue surged 13% to 308.7 million euros.