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VTTI to start second phase of Malaysia oil terminal in August
[SINGAPORE] VTTI, the storage unit of trading firm Vitol, will start the second phase of its Tanjung Bin oil terminal in southern Malaysia on Aug 1, expanding the terminal's capacity by nearly 30 per cent, a company official said on Thursday.
The extra storage space comes as oil pricing agency Platts prepares to include certain ports in southern Malaysia in its pricing assessments from July 1, which is expected to boost regional demand for storage.
The second phase of the Tanjung Bin terminal will add 260,000 cubic metres of storage for fuel oil and middle distillates to existing capacity of 890,000 cubic metres, commercial manager Jasper Schmeetz told Reuters by phone.
Phase two will also add a jetty that can accommodate Aframax vessels with a capacity of 120,000 deadweight tonnes(DWT). "We are currently marketing the capacity (for phase 2),"Mr Schmeetz said, declining to comment on whether any companies have signed up to lease the space yet.
VTTI is a 50/50 joint venture between the Vitol Group and Malaysian energy shipping company MISC Berhad .
The terminal's first phase, which started in April 2012, was fully leased, Mr Schmeetz said.
The first phase is able to store fuel oil, middle distillates and gasoline, while its jetty can accommodate a partly laden very large crude carrier (VLCC) or a fully laden Suezmax.
The second phase will come on slightly later than the initial target completion date of second quarter, 2015.