Global Petro Storage and Equinor have signed an agreement to develop South East Asia’s first independent LPG storage terminal in Port Klang, Malaysia.
The facility will be the first independent, refrigerated LPG terminal in Malaysia, and will provide storage services exclusively to Equinor.
Equinor will bring LPG to the terminal and sell into the domestic market in Malaysia as well as selling volumes to markets like Bangladesh, the Philippines, India, Indonesia and Vietnam.
It will have capacity to turn over 1.5 million tonnes of LPG each year and will be able to handle VLGC and pressurised LPG vessels on its jetty.
Construction work will begin in January 2019 and the 135,000 m3 facility is expected to be complete by early 2021.
GPS is the majority shareholder for the project and will develop, own and operate the LPG facility.
Eric Arnold, MD and CEO of GPS, says: ‘The new LPG terminal is a highly strategic, unique asset that will give Equinor a new platform in South East Asia, and enhance its reach into the region, where the LPG market is growing.
‘GPS’s focus is on developing the infrastructure that suppliers of gas and petroleum like Equinor need to access the global marketplace. This is the latest example of how our technical and operational expertise combine with our financial muscle to deliver industry-changing projects.
Molly Morris, vice president for products and liquids in Equinor, adds: ‘Malaysia is an attractive market and we believe that we will be a competitive supplier to the wholesale Malaysian LPG market as well as to other markets in the region.
‘The terminal and storage are also strategically located for blending and selling to other growing markets in the region.’
This agreement represents the first time the companies have entered into a formal partnership.
This follows GPS’s recent announcement on starting construction works on a new terminal in the Port of Hamriyah, in the UAE.