Malaysia to develop $661m oil storage, ship refueling site in Johor, Latest Business News - The New Paper

Malaysia to develop $661m oil storage, ship refueling site in Johor

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KUALA LUMPUR Malaysia yesterday said the Johor Port Authority was working to develop a RM2 billion (S$661 million) oil storage and ship refuelling site in the country's south.

That marks the latest step in a push to turn Malaysia's southern peninsular state of Johor into an oil and gas hub that could one day rival Singapore, currently Asia's main oil centre. The "Bunker Island Development" is set to have the capacity to store about 1.2 million cubic metres of various oil and gas products, the transport ministry said. It will be used for storage, blending and redistribution.

The Transport Ministry added that the project would also be used to promote cleaner marine fuel in accordance with International Maritime Organisation rules that will require lower sulphur content in shipping fuel from 2020.

Johor is where state energy company Petronas has begun operating its oil refinery and petrochemical project known as Pengerang Refining and Petrochemical.

The Transport Ministry said in its statement that Johor Port Authority had signed a sublease agreement with Smart Crest, which is funding the development. - REUTERS