Royal Vopak has signed a memorandum of understanding (MOU) with Dialog Group Berhad (Dialog) from Malaysia. Both companies will jointly study the feasibility to develop an independent storage terminal for oil products in Pengerang, Johor in southern Malaysia. The MOU enables Vopak to become a strategic business partner in equity ownership and development of this independent deepwater storage terminal. The Pengerang region is at the southern tip of Johor state, close to international shipping routes and Singapore’s international oil products hub.
The proposed terminal in the southeastern Pengerang district will have an initial storage capacity of 1.4 million cubic meters (cbm). This terminal will be a tank facility for storing, blending, and distributing crude oil and oil products with port facilities capable of handling large crude carriers. Ultimately, there is an area of 200 hectares available for development of a deepwater storage terminal for oil products.
If findings of the feasibility study are positive, the companies will form a joint venture company that will partner with the state government of Johor Darul Ta’zim and the State Secretary, Johor (Inc) to develop the terminal. This follows a MOU signed June 8, 2009, by Dialog, the state government of Johor Darul Ta’zim, and the State Secretary, Johor (Inc).
Dialog and Vopak are currently equity partners in Kertih Terminals in Malaysia. This is a 395,900-cbm storage facility for chemical products and liquefied gas in Kertih, which is in the Malaysian province of Terengganu. Vopak also operates a fully owned 20,600-cbm storage terminal for chemical products in the free trade zone within the Johor Port at Pasir Gudang, Malaysia.