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Royal Vopak has announced that it has signed a Memorandum of Understanding (MoU) with Dialog Group Berhad (Dialog) from Malaysia. Both companies will jointly study the feasibility to develop an independent storage terminal for oil products in Pengerang, Johor in southern Malaysia.

The MoU enables Vopak to become a strategic business partner in the equity ownership and development of this independent deepwater storage terminal. The Pengerang region is located at the southern tip of Johor state, close to international shipping routes and Singapore’s international oil products hub.

The proposed terminal in the south-eastern Pengerang district will have an initial storage capacity of 1.4 million cubic meters (cbm). The terminal will be a tank facility for storing, blending and distributing crude oil and oil products with port facilities capable of handling very large crude carriers. Ultimately, there is an area of 200 hectares available for the development of a world class deepwater storage terminal for oil products.

If the findings of the feasibility study turn out to be positive, the companies will form a joint venture company that will partner with the State Government of Johor Darul Ta’zim and the State Secretary, Johor (Incorporated) to undertake the development of the terminal. This follows a Memorandum of Understanding signed on 8 June 2009 between Dialog, the State Government of Johor Darul Ta’zim and the State Secretary, Johor (Incorporated).

Dialog and Vopak are currently equity partners in Kertih Terminals in Malaysia. It is a 395,900 cbm storage facility for chemical products and liquefied gas in Kertih, which is located in the Malaysian province of Terengganu. Vopak also operates a fully owned 20,600 cbm storage terminal for chemical products in the free trade zone within the Johor Port at Pasir Gudang, Malaysia.