While oil storage is highly sought after in Singapore, the newly opened Johor storage terminal is going to expand, in an attempt to catch more business from Singapore-based oil traders.
The RM500 million (54 million) Langsat terminal is to invest an additional RM90 million and develop a further 80,000 m3.
Langsat terminal chairman Ngau Boon Keat said that plans were also underway regarding the construction of another 170,000m3 of storage capacity for the terminal, but an investment figure was not given.
As the Langsat terminal is currently used mainly by oil trader Trafigura, Keat went on to say, We are also planning to acquire more land for the construction of more tankage facilities for other customers as well.
However, Johor is currently facing some competition from another oil trader, Vital and MISC. This company is constructing an 841,000m3 terminal at Tanjung Bin, with that facility scheduled to be completed by March 2012.
Singapore is at the heart of the oil trading business, and is the worlds third largest oil trading hub.