Vopak has announced its intention to expand the deep water independent liquid storage terminal in Pengerang, Malaysia.
The terminal, Pengerang Independent Terminals Sdn Bhd (PITSB), provides storage, blending and distribution services for crude oil and clean petroleum products such as gasoline, naphtha, diesel, jet fuel and kerosene. It will be expanded with 430,000 cbm to a total capacity of 1.7 million cubic meters.
The expansion relates to the storage of clean petroleum products. In total, 24 new tanks will be built ranging from 10,000 cbm to 25,000 cbm. In addition to the extra capacity, one extra berth will be taken into operation, bringing the total number of operating berths to six. The expansion is expected to be commissioned progressively from the first quarter of 2019.
The first phase of the terminal, the first of its kind in Asia, was completed in 2015 and is built on 150 acres of reclaimed land. It includes a deep-water jetty with a draft of up to 24 meters (79 feet) and is able to handle VLCCs. Developed as a joint venture with Dialog Group, a Malaysia-based integrated specialist technical services provider in the oil, gas and petrochemical industry, and the government of the State of Johor, the deepwater oil terminal is located at the southern tip of Malaysia’s Johor peninsula, Pengerang.
The Pengerang region is strategically located along the international shipping routes and is part of the Singapore oil hub, the main oil trading center of Asia, where there is a growing need for storage capacity.
Another strategic advantage of PITSB is that the terminal is connected with pipelines to the industrial terminal Pengerang Terminals (Two) which will be serving the new world-scale refinery and petrochemical complex currently under construction: the Refinery and Petrochemical Integrated Development - commonly known as RAPID. Vopak has a 25 percent share in this industrial terminal.
The growing need for new storage capacity for clean petroleum products is based on Asia's growing structural need for gasoline and jet fuel as well as the growing need for low sulfur diesel/gas oil as a result of the global low sulfur requirement for shipping active by 2020.
As of August 2017, Vopak operates 67 terminals in 25 countries with a combined storage capacity of 35.9 million cbm, with another 3.2 million cbm under development, to be added before the end of 2019.