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Titan Petrochemicals Group has signed separate one-year leasing contracts with two leading global oil trading companies for the entire 240,000 dwt storage capacity of Titan Chios, one of the Group’s floating storage units (FSUs) located at the Malaysian port of Tanjung Pelepas in Johor, near Singapore.

According Titan, floating storage demand in Singapore remains strong as international players actively participate in the physical trading, blending and delivery of oil products in the region.

The company says FSU operations have a particular advantage over onshore storage as lessees are able to blend fuel oil stocks more easily. Blending of fuel oil requires heating and easy berthing access, value-added services which FSUs deliver efficiently.

Titan has operated in Malaysia since 1999 and has obtained licenses from the Government to operate bonded FSUs for storage, trans-shipment and oil blending in waters close to Singapore.

In May 2008, Titan Chios was recognized by Platts, one of the world’s leading global enegy information providers, as a physical delivery point for fuel oil in market trades reported into the Singapore Platts price assessment process.

In addition, Titan says its contribution to the local community in Johor and the group's incident-free FSU operations have been recognized by Malaysia's Johor Marine Department.

Last month the Titan Group announced that it is to be restructured to focus more on its storage and shipyard operations, and scale down its supply chain activities. The main focus of its supply chain business is to be centered on its bunkering businesses in Singapore, Malaysia, Hong Kong and Mainland China.

It's trading business is also being substantially reduced, due to it being capital intensive and exposed to risks associated market with volatility. As part of this exercise, Titan revealed last month that it would reduce headcount in Singapore and Hong Kong by 56 from 205 to 149. The restructuring and the corresponding cost-cutting measures are expected to result in annual cost savings of US$2.8-3.3 million.