Rotary Engineering and Benalec Holdings Berhad (BHB:MK) has signed a Memorandum of Understanding (MOU) to develop an independent deepwater storage terminal for oil products in Tanjung Piai.
Strategically located at the south-western tip of Johor, Tanjung Piai offers easy access to international shipping routes of Straits of Malacca and Singapore's Jurong Island, an international petroleum, petrochemical and terminal hub.
With an initial capacity of 1 million cubic metres, with subsequent phases to increase capacity to 3 million cubic metres on the total reclaimed land area of 250 acres, the proposed terminal will be a petroleum storage facility for storing, blending and distributing crude oil and its derivatives. The integrated storage facility will be completed with deepwater jetty facilities capable of handling very large crude carriers (VLCCs).
Rotary Engineering says the two companies will jointly embark on a technical feasibility study, after which they will form a joint venture company by participating in taking equity ownership and development of the first 1 million cubic metres oil storage terminal as well as other terminal projects. In addition, the joint venture company will exclusively undertake the promotion of Tanjung Piai as an oil and petrochemicals terminal hub.
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