KUALA LUMPUR: Benalec Holdings Bhd has found a Singapore buyer for a plot of reclaimable land forming part of its ambitious reclamation project in southern Johor. The 100ha plot will be turned into an oil storage terminal in which Benalec will also own a small stake, partnering with foreign oil and gas firms.
Benalec, a marine construction specialist, yesterday announced that it has entered into a memorandum of understanding (MoU) with Rotary Engineering Ltd to collaborate in developing an independent oil storage terminal spanning 100ha in Tanjung Piai, located on the southwestern tip of Johor.
The land is part of Benalec’s entitlement to reclaim some 1,400ha in Tanjung Piai and 712ha in Pengerang. The Johor government has given “approvals in principle” to two units of Benalec for the reclamation projects.
Singapore-listed Rotary is a provider of engineering, procurement, construction (EPC) services specialising in the oil and gas industry. Rotary’s MoU with Benalec has lent more credence to the latter’s reclamation project in Johor, which surprised many in the industry.
“Benalec with its marine construction expertise will reclaim the land while Rotary will build the oil storage tanks,” said a source.
He explained that once the oil storage terminal is developed, a joint venture will be formed between Rotary, another oil and gas firm and Benalec to own and operate the terminal.
“Benalec will make profit from selling the reclaimed land to the JV, it will also take up a small stake in the JV which will provide it with recurring income,” he added.
Benalec stated that 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.
The terminal will have an initial storage capacity of one million cu m with subsequent phases to increase capacity to three million cu m, it said.
It is worth noting that the terminal, when it is developed, will be similar to Dialog Group Bhd’s facility in Pengerang, at the southeastern tip of Johor. So this could mark the start of a rivalry between the two companies, said an observer.
Dialog has begun the first phase of its 202ha independent deepwater terminal project in Pengerang. It has completed 5% of the first phase, which is scheduled for completion in early 2014.
Dialog’s terminal involves tankage facilities for handling, storing, blending and distribution of crude oil and petroleum products, together with marine facilities capable of handling large crude carriers with a water depth of up to 26m.
This article appeared in The Edge Financial Daily, December 9, 2011.
Benalec, a marine construction specialist, yesterday announced that it has entered into a memorandum of understanding (MoU) with Rotary Engineering Ltd to collaborate in developing an independent oil storage terminal spanning 100ha in Tanjung Piai, located on the southwestern tip of Johor.
The land is part of Benalec’s entitlement to reclaim some 1,400ha in Tanjung Piai and 712ha in Pengerang. The Johor government has given “approvals in principle” to two units of Benalec for the reclamation projects.
Singapore-listed Rotary is a provider of engineering, procurement, construction (EPC) services specialising in the oil and gas industry. Rotary’s MoU with Benalec has lent more credence to the latter’s reclamation project in Johor, which surprised many in the industry.
“Benalec with its marine construction expertise will reclaim the land while Rotary will build the oil storage tanks,” said a source.
He explained that once the oil storage terminal is developed, a joint venture will be formed between Rotary, another oil and gas firm and Benalec to own and operate the terminal.
“Benalec will make profit from selling the reclaimed land to the JV, it will also take up a small stake in the JV which will provide it with recurring income,” he added.
Benalec stated that 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.
The terminal will have an initial storage capacity of one million cu m with subsequent phases to increase capacity to three million cu m, it said.
It is worth noting that the terminal, when it is developed, will be similar to Dialog Group Bhd’s facility in Pengerang, at the southeastern tip of Johor. So this could mark the start of a rivalry between the two companies, said an observer.
Dialog has begun the first phase of its 202ha independent deepwater terminal project in Pengerang. It has completed 5% of the first phase, which is scheduled for completion in early 2014.
Dialog’s terminal involves tankage facilities for handling, storing, blending and distribution of crude oil and petroleum products, together with marine facilities capable of handling large crude carriers with a water depth of up to 26m.
This article appeared in The Edge Financial Daily, December 9, 2011.
