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Friday April 27, 2012

PITSB to set up crude oil storage terminals

KOTA TINGGI: Pengerang Indepen-dent Terminals Sdn Bhd (PITSB) plans to set up dedicated terminals for crude oil storage under its second phase of expansion.

Chairman Dr Ngau Boon Keat said the project would probably take place two years after the commercial operations of the company's independent terminal start in 2014.

He said the dedicated terminals would cater to national and international oil companies and traders to store crude oil for refineries-related activities.

“We'll also conduct a feasibility study on whether there is demand for liquefied national gas (LNG) storage at the complex,'' said Ngau at the ground-breaking ceremony of the Pengerang Independent Deepwater Petroleum Terminal by Johor Mentri Besar Datuk Abdul Ghani Othman yesterday.

Johor Memteri Besar Datuk Abd Ghani Othman(left), President (Asian Division) of Royal Vopak N.V Patrick van der Voort (center) and Pengerang Independent Terminals Sendirian Berhad Chairman Dr Ngau Boon Keat (right) looking at the deepwater petroleum terminal area after ground-breaking ceremony of the terminal at Pengerang, Kota Tinggi yeaterday. - A.Rahman Embong/The Star

He said if there was a need for the LNG storage terminals in the future, the company would definitely proceed with the project. Based on the growing demand for energy in the region, Ngau said the possibility that the LNG storage terminals would take place was good.

The RM5bil complex on 323.74ha site in Pengerang would provide storage, blending and distribution services for crude and clean petroleum products, he said.

He added that the complex's petroleum storage facilities of about 1.3 million cu m could be further expanded by an additional 1 million cu m.

Dialog Group Bhd and Royal Vopak hold 51% and 49% equity respectively in a joint-venture company, Pengerang Terminals Sdn Bhd, which owns 90% of PITSB.

The Johor government, via its investment arm State Secretary Inc, holds the remaining 10% stake in PITSB.

Ngau said the deepwater jetty facilities of up to 24 metres would be able to accommodate very large crude carriers and ultra large crude carriers.

“We want to transform Pengerang into an international oil and gas hub and today's event reflects our commitment towards that objective,'' said Ngau.

He said Pengerang was strategically located at one of the world's busiest shipping lanes and close to petroleum and demand centres in the Middle East, India and China.

Ngau added the area had the right ingredients to grow and become a large oil-refining and petrochemical-manufacturing centre and trading hub for oil, petrochemical and LNG within five to 10 years.

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