Singapore-based oil trader Concord Energy said today it aimed to build an oil storage terminal with capacity of up to 2 million cubic metres in southern Malaysia, close to Asia's largest oil trading hub.
Concord signed a pact with Malaysian technical services provider Dialog Group Berhad for a feasibility study to build the terminal at Pengerang, a seaside town east of Singapore.
The project will also include a deepwater jetty to provide access for Very Large Crude Carriers, the companies said in a joint statement that gave no financial details.
The plan, which will form part of the Pengerang Deepwater Petroleum Terminal development being built by commercial storage operator Vopak in the Malaysian state of Johor, will be completed in stages, with an initial planned capacity of up to 1 million cubic meters.
Construction of facilities in Johor comes as land-scarce Singapore has been struggling to cope with expanding demand for oil storage in the region.
Singapore is located strategically on the Malacca Strait, which carries a quarter of all sea-borne oil trade, and the bulk of Asia's oil imports.
Concord Energy already partners with a subsidiary of China's Sinopec on an oil storage terminal now under construction in the United Arab Emirates port of Fujairah. - Reuters, November 21, 2013.