August 15, 2013 [Platts] - The second phase of development at the ATT Tanjung Bin, or ATB, oil terminal in Johor, Malaysia, which will add 250,000 cubic meters of storage capacity and an additional berth for Aframax tankers, will be completed in the first quarter of 2015, a company source with the terminal's owner, VTTI, said Thursday.
This phase will boost the terminal’s storage capacity to about 1.14 million cu m and will add one more berth with similar specifications to its existing No. 2 berth: maximum vessel length of 260 meters, maximum deadweight tonnage at 120,000 mt, allowable draft at berth of 16.7 meters and a maximum manifold height from waterline at 17.45 meters.
“[There will be] one additional Aframax berth, which can alternatively be used to berth two smaller ships. The expansion phase shall be interconnected with the existing Phase 1 capacity and have access to the existing five jetties,” the source said in an emailed statement to Platts.
The new berth will be able to receive both clean and dirty oil products from an additional 10 storage tanks.
The exact allocation of tank capacity to dirty and clean products has, however, not been decided and is pending potential tenants’ requirements.
VTTI, owned 50% by Vitol Group and 50% by MISC Berhad of Malaysia, said the cost of Phase 2 is estimated at $100 million.
In January, Platts reported that the completion of Phase 2 of the terminal had been delayed to mid-2014 from the third quarter of this year, but reasons for the delays were unclear. At that time, a company official said slight delays are not unusual when building oil terminals.
ATB will have a remaining 15 hectares for development following the completion of Phase 2 — which covers five hectares in land area — potentially allowing it to increase total storage capacity to 1.6 million cu m, VTTI said.
Under Phase 1, VTTI launched official operations for dirty products in April last year and for clean products in June last year, Platts previously reported.
Phase 1’s development comprised a total of five berths and 41 oil storage tanks, with 40% and 60% dedicated to storing fuel oil and clean oil products, respectively.
The jetty carries four, 30-inch fuel oil pipelines and an additional six, smaller pipelines for clean products. Fuel oil can be loaded at a total pumping rate of 7,500 cu m/hour, middle distillates at 7,000 cu m/hour and light ends at 5,500 cu m/hour.
According to VTTI, the 24-hour terminal currently receives on average 100 vessels/month and about 2 million mt of oil products every month.
Since its inclusion in the Platts Market on Close assessment process as an alternative delivery point to Singapore in December 2012, there has been around 30 trades of oil products (fuel oil, middle distillates and gasoline) loading from ATB, according to Platts data.
VTTI highlighted that all 891,000 cu m of capacity under its Phase 1 development has been leased out.
VTTI operates a number of terminals and tank operations around the world, offering a total storage capacity of 8.5 million cu m.
ATB, alongside with the Tanjung Langsat and Pengerang terminals, have been earmarked as key projects central to Malaysia’s development into an oil and gas center.
The Malaysian government has announced plans to build close to 10 million cu m of oil storage by 2020.
Tanjung Langsat (inclusive of Tanjung Langsat Port, Langsat Terminal One and Langsat Terminal Two) has a combined oil storage capacity of 740,000 cu m, while Pengerang is expected to bring online 1.28 million cu m by January 2015.
