Global Petro Storage (GPS) has signed a long-term agreement with Equinor, the multinational energy company, to develop South East Asia’s first independent liquid petroleum gas (LPG) storage facility in Port Klang, Malaysia.
The new 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.
The facility will have capacity to turn over 1.5million tons of LPG each year and will be able to handle very large gas carriers (VLGC) and pressurised LPG vessels on its jetty. Work will begin in January 2019 and the 135,000 cubic metre terminal should be completed by early 2021.
GPS, an independent storage and logistics company, is the majority shareholder for the project and will develop, own and operate the LPG facility.
Eric Arnold, managing director and CEO of GPS said: “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.
“We look forward to working with Equinor and our construction partners over the next two years to build this unique new facility.”
Molly Morris, vice president for products and liquids in Equinor ASA said: “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.
“GPS’s choice of location combined with its knowledge, experience and vision made this proposal very attractive to us. The terminal will give us the opportunity to create value and strengthen our competitiveness.”
GPS and Equinor’s agreement to develop a new LPG facility in Port Klang, Malaysia, represents the first time the companies have entered into formal partnership.
The announcement in Malaysia comes just one month after construction began on GPS’s terminal project in the Port of Hamriyah in the United Arab Emirates (UAE) with two long-term partners . The terminal, GPS’s first investment in the Middle East, will provide services for industrial reprocessing of waste oils, trading, import and bunkering.