Thursday, December 8, 2011

Benalec signs MoU to jointly develop deepwater storage terminal in Johor

KUALA LUMPUR (Dec 8); Benalec Holdings Bhd has entered into a MoU with Singapore-based Rotary Engineering Ltd to jointly develop an independent deepwater storage terminal for oil products in Tanjung Piai, Johor.

The company said on Thursday that the MoU would enable it to become a strategic business partner with Rotary in the equity ownership and development of the terminal in Tanjung Piai.

Benalec said the proposed terminal would have an initial storage capacity of 1 million cubic metres (cbm), with subsequent phases to increase capacity to 3 million cbm on the total reclaimed land area of 250 acres.

The company said the project would be undertaken on a piece of 3,485 acres of land situated at the coast of Tanjung Piai.

The terminal will be a tank facility for storing, blending and distributing crude oil and petroleum products with deepwater port facilities capable of handling very large crude carriers, it said.

Rotary is an oil and gas infrastructure services company offering fully integrated engineering design, procurement, CONSTRUCTION [] and maintenance (EPCM) services to the oil and gas, petroleum, petrochemical and pharmaceutical industries.

Benalec said the total investment outlay, and its breakdown, of the proposed terminal are yet to be determined, pending the results of the technical feasibility of the development to be conducted.

'Hence, the sources of funding of the proposed terminal and the eventual issued and paid-up share capital (including the equity participation by Benalec via its subsidiary and Rotary) of the joint venture company are yet to be determined,' it said.

Benalec said it would utilise both internally generated funds and borrowings to finance its investment in the joint venture company, when formed.

'Benalec's equity ownership and development in the independent deepwater storage terminal will result in an increase in its sources of sustainable and recurring income in the future,' it said.


No comments:

Post a Comment