September 7, 2012 [The Star Online] - The Tanjung Bin Petrochemical and Maritime Centre (TBPMC) is in the final stage of discussions with several companies over investments of up to RM2 billion in the oil and gas hub.
The master developer for the 912.6 ha project, which will cost RM2.4 billion, is Seaport Worldwide Sdn Bhd, a wholly-owned subsidiary of Johor Port.
Johor Port Chief Executive Officer Shahrull Allam Shah Abdul Halim said one company has already signed a memorandum of understanding and will invest RM1 billion in TBPMC, including the construction of a jetty.
“We are in serious talks with three potential companies with total investment of RM2 billion,” he told Bernama at his office recently. The entry of the three new investors will add three million cu. m. to the centre’s oil storage capacity, he said, adding the centre has a maximum capacity of 10 million cu. m.
TBPMC’s anchor tenant, ATT Tanjung Bin Sdn Bhd (ATB), is already in operation, providing storage capacity of 860,000 cu. m.
ATB is a 50:50 joint venture between local maritime conglomerate MISC Bhd and the world’s largest independent energy trading companies, Vitol Terminals BV.
On April 10 this year, ATB received its first oil shipment for the regional market from MT Kittion, a 100,000 dead weight tonne tanker.
The ATB oil terminal, which began construction in September 2009 with an initial investment of RM1 billion, operates on a 50 ha. piece of land in TBPMC, and will eventually have a storage capacity of between 1.2 million to 1.4 million cu. m., said Shahrull Allam Shah.
He said Johor Port’s current focus is to develop the first phase of TBPMC on a land area of 121.4 to 161.9 ha. “TBPMC is one of the Entry Point Projects (EPP) identified for Iskandar Malaysia. We have proved that we can implement an EPP project, in fact it is already operational,” he said.
The government plans to develop the oil and gas industry in Iskandar Malaysia, with Tanjung Bin identified as one of the main centres.
Shahrull Allam Shah said with the very high demand for an oil and gas facility in south Johor, the strategically-located TBPMC could attract new investments into the industry.
“Facing the Port of Tanjung Pelepas, just 45 minutes from the Strait of Melaka and deep sea, and able to handle large vessels including Very Large Crude Carriers (VLCCs), TBPMC is an attractive destination for the oil and gas industry,” he added. – Bernama
