The agreement to construct a huge 1,000,000m3 tank farm in Kedah, Malaysia has been finalised in a deal worth 220 million.
The construction of the tank terminal is to be developed in phases by tank construction specialist Verwater, initiating with the construction of a 22-kilometre long pipeline towards the coast of mainland Malaysia. Director of International projects for Verwater, Hermans Buisman, claimed the project is expected to be completed and online in its entirety by 2012.
The construction of the crude oil storage terminal comes after negotiations between Verwater and investment company Lenstar were concluded, with Lenstar already in possession of the 100 hectares of land required and all the necessary permits to start the build of the new tank farm.
Buisman said that despite sealing the contract requiring them to construct a tank farm double the size of pervious projects, Verwater had no immediate plans to focus their future efforts exclusively in Asia.
The new storage terminal will be used by Malaysian company Pristine Oil for the storage of crude oil.