Tuesday, April 10, 2007

Malaysia as South East Asian oil hub

Artist's impression of the new hub

Malaysia is set to become the oil hub for the entire South-East Asian region with the setting up of a RM1.4 billion (approx. $405.6 million) storage facility in Pulau Tanjung Bin near Tanjung Pelepas, Johor (just off the Port of Tanjung Pelepas). The Malaysian Government has given the green signal for the project.

This is a significant development and the facility would be the World's largest Petroleum hub when it is completed. The 1.0 million cubic-meter storage terminal would be located on a 40 ha island and will be able to handle over 60 million tonnes of petroleum products annually.

The proposed project will be handled by KIC Group of Companies subsidiary, Asia Petroleum Hub Sdn Bhd, which is a joint venture between KIC Group of companies (90%) and Trek Perintis Sdn Bhd (10%).

According to Asia Petroleum Hub's executive chairman Abdul Rashid Mohd Isa, the hub would enable the government to reduce its subsidies for petroleum products through the elimination of double handling charges. (Source: The Edge).

The facility is expected to start operations by early 2008.

Some more details about the project:
- Financial adviser and financier: CIMB Group
- Managed by: Kadriah Integrated Facilities Sdn Bhd
- Project management: QI-pmc Sdn Bhd
- Engineering and design consultant: Mott MacDonald Ltd, a British-based engineering firm
- Contractors: Muhibbah Engineering (M) Bhd and Nam Fatt Construction Sdn Bhd, with ZAQ Construction Sdn Bhd as the managing contractor.

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