Norwegian energy major Equinor and Global Petro Storage (GPS) have entered into a long-term agreement for a terminal and storage for LPG in Port Klang, Malaysia.
Under the agreement, GPS will build a new facility with comencement of operations planned for mid-2021. Equinor will bring LPG to the terminal and sell into the domestic market in Malaysia as well as neighboring markets like Bangladesh, the Philippines, India, Indonesia and Vietnam.
Equinor said it aims to capture a larger share of the attractive LPG market in South-East Asia through the new deal. Equinor will also have an option to acquire an ownership share of the new storage facilities and terminal, where Equinor will be the only user.
“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,” said Molly Morris, vice president for Products and Liquids at Equinor.
“The storage offers us considerable flexibility as it can receive gas tankers of all sizes and we can choose if we want to blend and prepare smaller quantities to deliver into the domestic market or other countries in the region, depending on which is most attractive. This way, active use of our assets can add value to our LPG business and be a long-term basis for value creation,” said Giuseppina Ragone, vice president for Manufacturing and Storage in Asset Management at Equinor.