Vopak to expand Pengerang terminal in Malaysia


Netherlands-based company Royal Vopak and its joint venture partners are set to expand the company's liquid storage facility known as Pengerang Independent Terminals (PITSB), which is located at Pengerang, Johor, in southern Malaysia. 

The expansion will see 430,000m³ of new spaces added to PITSB, which will bring the terminal’s total capacity to approximately 1.7 million cubic meters.

The proposed expansion is slated to be commissioned by the first quarter of 2019 but is still pending the completion of final formalities.

PITSB currently provides storage, blending and distribution services for crude oil and clean petroleum products. The new expansion is expected to facilitate the storage of clean petroleum.

The terminal is also capable of handling very large crude carriers (VLCCs).

Royal Vopak said in a statement: “This expansion of PITSB is aligned with Vopak's strategy to invest in strategic hub locations.

"The growing need for new storage capacity for clean petroleum products is amongst others based on Asia's growing structural need for gasoline and jet fuel."

“The growing need for new storage capacity for clean petroleum products is amongst others based on Asia's growing structural need for gasoline and jet fuel, as well as the growing need for low sulphur diesel / gas oil as a result of the global low sulphur requirement for shipping (active by 2020) as set by the International Maritime Organisation (IMO).”

The expansion will feature a total of 24 new tanks upon completion, which capacities ranging from 10,000m³ to 25,000m³.

A new berth will also be built as part of the development, bringing PITSB’s total number of operating berths to six.

PITSB is connected through a pipeline network to the industrial terminal Pengerang Terminals (Two), which will cater to Refinery and Petrochemical Integrated Development (RAPID), a refinery and petrochemical complex that is currently under construction in Johor.

The terminal is jointly owned by Vopak (44.1%), Dialog (45.9%) and State Government of Johor DarulTa'zim (10%).