12 June 2013 11:34 [Source: ICIS news]
SINGAPORE (ICIS)--Oiltanking and Gunvor Group will jointly build a new terminal on the island of Karimun in Indonesia, the European firms said on Wednesday.
The facility, which will have an initial storage capacity of 760,000 cubic metres, is being constructed to meet the incremental storage needs of the Singapore trading area, the companies said in separate statements.
Financial details of the project were not disclosed.
The Karimun site was chosen as an alternative to the tightening storage space in Singapore, where further growth in storage capacity is being hampered by scarcity of waterfront and a lack of land available for new expansion, German firm Oiltanking said.
“The location is ideal due to its proximity to Jurong Island (Singapore’s industrial petroleum and petrochemical hub) and the existing ship-to-ship operations off the coast of Karimun, its favorable nautical conditions and availability of ready-to-build land,” it said.
The facility will be managed as an independent commercial storage terminal by Oiltanking, while commodities trading firm Gunvor will take a minority equity stake and rent part of the capacity.
The terminal is expected to be operational by the second quarter of 2015 and will cater to the storage and handling of clean petroleum products and black oil, Oiltanking said.
“The initial capacity will be supported by four jetties capable of accommodating vessels of up to VLCC [very large crude carrier] dimensions. The terminal has ample land for further expansion,” it added.
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