MISC Bhd and Vitol Tank Terminals International will build the Johor oil terminal which is expected to begin operations in April 2012
MISC Bhd the world's single largest owner and operator of liquefied natural gas tankers, signed a pact yesterday to jointly build an oil terminal at Tanjung Bin, Johor with Vitol Tank Terminals International BV (VTTI).
The oil terminal, which is still subject to approval by relevant Malaysian regulatory authorities, is expected to start operations in April 2012, with a base capacity of 741,200 cum.
Under the deal, MISC's subsidiary, MISC International (L) Ltd and VTTI Tanjung Bin SA (VTTI SPV), will incorporate an equally-owned joint-venture company called Asia Tank Terminal Ltd (ATTL) in Bermuda to build, commission and operate the oil terminal.
VTTI SPV is a subsidiary of VTTI, which is part of the leading international energy trading group, tol.
Upon completion of the incorporation and share subscription exercise, ATTL will wholly own ATT Tanjung Bin Sdn Bhd (ATB), which holds a 30-year land lease agreement with Seaport Worldwide Sdn Bhd of a 50ha site at the Tanjung Bin petroleum and maritime industry centre.
"Through it (ATB), (ATTL will) design, construct and operate the oil terminal," MISC said in a statement yesterday.
Vitol Asia Pte Ltd will be the key customer at the ATB oil terminal.
MISC said ATTL will enhance the company's service offerings and support its strategy to expand its business across the value chain by providing integrated services in the form of logistics support together with its core shipping operations.
The signing of the joint- venture agreement took place in Kuala Lumpur yesterday.
Signing on behalf of MISC was its president and chief executive officer Amir Hamzah Azizan, while VTTI was represented by its chief executive officer Rob Nijst.
Source: Business Times