Kuala Lumpur: Malaysia is looking to ramp up offshore related investments in the Labuan area of Johor to make it a hub for oil and gas. RM263m is planned to be spent expanding Labuan Shipyard and Engineering, while a further RM250m will go on a wharf at the Asia Supply Base in the same area.
Speaking at the opening of the Asean Oil and Gas Expo 2012 yesterday, Deputy Prime Minister Muhyiddin Yassin said Johor would benefit from its proximity to Singapore which was facing near full-utilisation of its oil and gas storage facilities coupled with constraints from further expansion at a time when Asia's petroleum consumption was expected to grow by an additional 1.8 million barrels per day by 2020.
“With Johor ports located on major shipping routes, deep water marine accessibility and abundant space, Malaysia is poised to tap regional midstream logistics market of oil and gas storage,” he said. [31/10/12]