PETALING JAYA: Shell Malaysia Trading Sdn Bhd (SMT) has announced an expansion of its Westport Fuels Terminal in Port Klang, in a move aimed at strengthening fuel supply security as demand continues to grow nationwide.
SMT said the project will add three new petrol and diesel storage tanks, allowing the facility to handle larger medium-range vessels and improve supply efficiency.
Construction is set to begin this year in phases, with the upgraded terminal expected to be completed by early 2028.
SMT managing director Shairan Huzani Husain said the expansion comes at a critical time when energy security has become increasingly important.
“This project matters because what we do here at this terminal and also others around the country impacts how millions of Malaysians move every day. Today’s groundbreaking marks real progress in our efforts to support national energy needs.
“With this investment, we are strengthening this terminal to do more and to bring in fuels more competitively, to handle larger volumes and to keep supply reliable across the country,” he said during a groundbreaking ceremony at the terminal on Monday. The event was officiated by Selangor Menteri Besar Datuk Seri Amirudin Shari.
Shairan said the investment also reflects Shell’s long-standing commitment to Malaysia, where it has operated for 135 years.
He said energy security is not optional but essential, and SMT is working alongside the government and national oil firm Petronas to ensure consistent fuel supply for motorists.
Shairan also highlighted Selangor’s importance to Shell’s operations, describing it as the state with the company’s largest footprint, accounting for about 20% of its mobility network.
“What we build here directly shapes how we serve Malaysians nationwide,” he said.
Shairan thanked the Selangor government and partners for their continued support, saying the project would not have been possible without close collaboration.
“This is not just a project for today, but an investment for the future. As national energy needs continue to grow, it is crucial that we build the capacity to meet rising demand reliably and sustainably,” he said.
All contracts for the expansion have been awarded to Malaysian-incorporated companies.
In his speech, Amirudin cautioned that global supply chain shocks are beginning to expose vulnerabilities in Malaysia’s economy, underscoring the urgency of strengthening energy infrastructure such as the Westport Fuels Terminal expansion.
He said while Malaysia has yet to feel the full impact of disruptions, it is only a matter of time for a trading nation that depends heavily on the smooth flow of goods.
Amirudin said the situation underscores the need for contingency planning, especially in Selangor, which contributes more than a quarter of the country’s gross domestic product and accounts for nearly half of peak energy consumption in Peninsular Malaysia.
“Malaysia has yet to feel the full brunt of the effects but as a trading nation which relies on the flow of goods both in and out of our country, we will feel it. It is not a question of if, but when. Without sufficient energy supply, especially for critical sectors like manufacturing and logistics, the economy can come to a halt,” he said.
Amirudin described the terminal expansion by SMT as a timely and strategic investment that will boost capacity, improve efficiency and strengthen the resilience of the fuel supply chain.
He said the project would help ensure businesses continue operating smoothly while allowing Malaysians to go about their daily lives without disruption.
With Port Klang situated along one of the world’s busiest shipping routes, he said such developments would further cement Selangor’s standing as a key logistics, industrial and energy hub in the region.
Amirudin also praised the collaboration between the government and industry players, saying long-term partnerships with companies like Shell are crucial in safeguarding national energy security and sustaining economic growth.
The Westport terminal has been a key part of Shell’s supply network since 2010, supported by partnerships with port operator Westports and various industry stakeholders.
