The project involves the construction of a 1 million metric tonnes per annum throughput RLPG storage & break bulk facility at an estimated project cost of USD 150 million to USD 200 million. Upon completion, the RLPG terminal will be equipped to handle the storage and distribution of propane and butane, with direct connectivity to the deep-water berth facility capable of receiving Very Large Gas Carriers. The RLPG terminal is expected to be operational in 1Q 2018.  Amity Energy is in the final stages of discussion with potential customers and expects to have final investment approval by end July 2016.

According to Mr Muzayyin “There is significant demand by international oil companies for an independent RLPG break bulk terminal in South East Asia. We project a significant increase of LPG imports from North America and Middle East to Asia. The cost effective and efficient distribution of imported LPG to the South Asia Markets requires a break bulk terminal along the major international shipping lanes. Tanjung Langsat Port is ideally located to provide this service. We anticipate some of the LPG will be sold domestically with the majority being sold by our customers in smaller pressurized vessels to markets such as Bangladesh, Sri Lanka, Myanmar, Philippines, Vietnam and Indonesia. We have a long standing relationship with Johor Corporation and the Johor State Government and they are providing tremendous support to ensure the flawless and timely execution of the terminal”.

During the engineering, procurement & construction phase, about 800 persons of varying skills will be directly employed on this job. Local suppliers for material and construction equipment will also be utilized. 100 permanent highly-skilled management and professional jobs will be created for the operation of this RLPG Terminal. The facility will also tap on the local market for ancillary engineering, labour support services and supplier contract work during operations, creating indirect employment of more than 100 new jobs.

The second phase of the storage complex will include a petroleum products (for fuel oil, gas oil, naphtha and gasoline) storage terminal with a capacity of 400,000 m3 at an additional cost of USD 150 million to USD 200 million.  This will be considered as the Phase 2 expansion, and will create significant employment during construction of about 1000 people, and another 60 new permanent jobs during operations.

By leveraging on both parties’ expertise and recognising the synergies of their respective strengths, mutual benefits are expected to be achieved from the proposed developments.