Norwegian oil and gas giant Equinor has signed an agreement with Singapore-based Global Petro Storage (GPS) regarding a new Liquified Petroleum Gas terminal (LPG terminal) in Malaysia.
The new LPG terminal, which will provide terminalling and storage for LPG, will be built by Global Petro Storage in Port Klang.
Global Petro Storage will handle the construction of the new LPG facility while Equinor will provide the LPG for the terminal and sell into the Malaysian domestic market and also in Bangladesh, the Philippines, India, Indonesia and Vietnam. Equinor will procure the LPG from the North Sea, North Africa, the Middle East and Australia.
The Norwegian company said that through the new LPG terminal and storage facility, it aims to take a larger share of the LPG market in South-East Asia.
Equinor products and liquids vice president Molly Morris said: “Malaysia is an attractive market and we believe that we will be a competitive supplier to the wholesalers of LPG into the domestic market. The terminal and storage are also strategically located for blending and selling to other growing markets in the region.”
Under the terms of the agreement, the oil and gas major will have an option to acquire an ownership stake in the proposed LPG terminal in Malaysia, where it will be the exclusive user.
Equinor asset management manufacturing and storage vice president Giuseppina Ragone said: “The storage offers us considerable flexibility as it can receive gas tankers of all sizes and we can choose if we want to blend and prepare smaller quantities to deliver into the domestic market or other countries in the region, depending on which is most attractive.
“This way, active use of our assets can add value to our LPG business and be a long-term basis for value creation.”
Global Petro Storage, which was launched in late 2016, is a storage and logistics company, backed by Blue Water Energy and White Deer Energy.
Last month, the company alongside Innova Refining Industries and Chemie Tech reached a final investment decision to invest in a new terminal project in the Port of Hamriyah in the UAE. The terminal, which will offer services for industrial reprocessing of waste oils, trading, import and bunkering, is slated to be ready by late-2019.