The construction of a $400 million (290 million) oil terminal project in Malaysia's southernmost state near Singapore has begun at the Asia Petroleum Hub, an offshore oil storage and bunkering facility in the southern state of Johor.
The 40-acre complex will be built by a consortium led by Malaysian terminal operator KIC Oil and Gas, and is expected to be ready by the end of 2009. A unit of Dutch commodities trading house Trafigura Beheer BV, an active player in Malaysia's oil storage sector, is also involved in the project.
When built, the 60 tanks, which will hold mainly jet fuel and fuel oil, will have a total capacity of 1 million cubic metres. Oil storage capacity has been fully taken up, Abdul Rashid Isa Al-Qadiry, executive chairman of Asia Petroleum Hub, says.
Equipped with seven berths, it is expected to handle 30 million tonnes of petroleum products annually. The company is also targeting 3,000 vessels to call at the port each year, including supertankers.
'Upon completion, this hub will herald Malaysia as a significant market place for oil and derivates trading at par with any established international oil terminal,' adds Al-Qadiry.