March 25, 2019 [The Maritime Executive] – Equinor and Global Petro Storage (GPS) have entered into a long-term agreement for a terminal and storage for LPG in Port Klang in Malaysia.
GPS will build the new facility which is expected to be operational in mid-2021. Equinor will bring LPG to the terminal and sell into the domestic market in Malaysia as well as selling volumes to markets like Bangladesh, the Philippines, India, Indonesia and Vietnam.
Equinor is already a significant LPG player with around 10 percent of the global waterborne LPG volumes. With the new terminal and storage Equinor aims to capture a larger share of the attractive LPG market in South-East Asia.
The company will source LPG from the North Sea, North Africa, the Middle East and Australia.
As part of the agreement, Equinor will have an option to acquire an ownership share of the new storage and terminal, where Equinor will be the only user. The terminal will be able to receive gas tankers.
LPG consists of the liquified gases propane and butanes and is used for transport and industrial purposes as well as cooking, hot water systems and heating. Equinor says the use of LPG is recognized as being an attractive energy option for reducing greenhouse gases as well as improving indoor and outdoor air quality.
“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,” says Molly Morris, vice president for Products and Liquids at Equinor.