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Royal Vopak and Dialog Group Berhad of Malaysia have reached agreement to build and operate a new independent storage terminal for oil products in Pengerang, Johor in southern Malaysia.

For this purpose a joint venture has been established in which Vopak holds 49 percent. The joint venture will form a partnership with the State Government of Johor Darul Ta’zim, in which the joint venture will hold 90 percent ownership.

The Pengerang region is located at the south eastern-most tip of Johor, close to international shipping routes and the international oil hub in Singapore.

The terminal will have an initial storage capacity of approximately 1.3 million cubic metres (cbm) and is expected to be commissioned in 2014. There is also scope for the capacity to be expanded by an additional 1 million cbm in the future.

The facility will provide storage, blending and distribution services for crude oil and clean oil products and will be capable of handling Very Large Crude Carriers. In the initial phase the terminal will have six berths.

With this new world-class deepwater storage terminal, the partners aim to serve the growing need for storage capacity in the main oil trading center of Asia and to facilitate the physical transportation of crude oil and clean oil products.

Dialog and Vopak are currently equity partners in Kertih Terminals in Malaysia. This is a 395,900 cbm storage facility for chemical products and liquefied gas, located in Kertih, Terengganu.

With this new terminal for oil products in Pengerang as well as other announced projects under construction Vopak says it will add 7.3 million cbm to its total storage capacity for bulk liquids on a global scale in the coming years, leading to a total storage capacity of 32.7 million cbm by 2014.