Newsbreak: Li Ka-shing-backed venture to build STS hub in Johor
A new ship-to-ship (STS) marine gas oil (MGO) and marine fuel oil (MFO) storage and supply hub will be built off the Port of Tanjung Pelepas in southern Johor, say sources familiar with the matter. It is touted to be the largest in the world.
The construction cost of the hub — to be developed by little-known KA Petra Sdn Bhd, partnering Hong Kong tycoon Li Ka-shing’s Hutchison Port Holdings Ltd — is estimated at RM500 million, a Hutchison Port official tells The Edge.
“KA Petra has been in the STS business since 2005, providing offshore
storage and MGO and MFO supply services between vessels in the waters
off Port Klang, Selangor, Tanjung Beruas, Melaka, and Tanjung Pelepas,
Johor.
“In Johor, it is one of four operators licensed by the Ministry of
Transport to provide STS services to vessels coming to the Port of
Tanjung Pelepas (PTP) and Port of Singapore,” says the official.
Hutchison Port will have an up to 30% stake in the completed STS hub,
the official adds. The project will have a gross development value of
RM8 billion to RM12 billion.
A check with the Registrar of Companies shows that KA Petra is a
distributor of marine lubricants and provider of shipping and oil and
gas-related services. It is almost wholly owned by Datin Lelawati
Raffik.
According to RoC, for the financial year ended Dec 31, 2017 (FY2017),
KA Petra recorded a 170% year-on-year increase in profit after tax (PAT)
to RM2.05 million on revenue of RM336.88 million.
The STS hub will be developed by KA Petra’s wholly-owned subsidiary, KA
Petra STS Hub Sdn Bhd, the company in which Hutchison Port will be
investing.
The company official says the STS hub will be able to handle up to 30 very large crude carriers (VLCCs) at any given time, compared with the existing STS operation there, which can only handle nine.
The new STS hub will have mooring buoys and “dolphins” to berth the
tankers. The usage of dolphins — isolated marine structures for berthing
and mooring vessels — enables mother ships to be berthed without the
need for large piers or docks.
The current STS operation, where the mother ships — large tankers and
crude carriers — are anchored in an offshore area to transfer fuel and
other liquid hydrocarbon products onto other vessels without being tied
to any permanent structure, is taking up too much space.
This is because VLCCs and their daughter ships — the vessels used to
transport liquid hydrocarbon from the mother ships to their destinations
— tend to swing due to the ocean currents, explains a source from the
maritime industry. The area can only cater for only nine VLCCs at any
given time due to the vessel swing factor, the source adds.
The area where the STS hub will be built stretches 2,800 acres between PTP and the Johor Baru port limit.
“With the STS hub being developed, the number of VLCCs that can be
moored off PTP will treble to up to 30 at any given time, which will
make the waters off PTP the largest STS hub in the world,” the source
says.
But is there a need to develop the STS hub? It will raise the volume of
oil products traded in Malaysia, which would increase the country’s
weightage in the Platts’ Free-on-Board (FOB) Straits pricing of oil
products.
In 2014, Platts, the leading global energy, petrochemicals and metals
information provider, introduced the FOB Straits benchmark to replace
the FOB Singapore and FOB Malaysia oil products reference rate.
These oil products are traded through Singaporean terminals, as well as
four Johor ports, namely Tanjung Bin in the southwest, and Pasir
Gudang, Tanjung Langsat and Pengerang Independent Terminal in the
southeast.
If the STS hub materialises by 2021, Johor’s petroleum product storage
capacity will increase further, in line with the federal and state
governments’ aspiration to turn the state into one of the largest
petroleum products trading hubs in the world.
ATT Tanjung Bin Sdn Bhd (ATB), which operates a petroleum product
storage terminal in Tanjung Bin, has a storage capacity of almost one
million cu m. ATB is a joint venture between MISC Bhd and Vitol, a
leading global petroleum product trading company.
Pengerang, on the southeast coast of Johor, has the largest petroleum
product storage capacity in the state. Phase 1 of the Pengerang
Deepwater Terminal (PDWT) has a storage capacity of 1.3 million cu m of
petroleum products, while Phase 2 has a capacity of 2.1 million cu m.
The PDWT is a joint venture between Dialog Group Bhd, Royal Vopak NV
and Johor’s State Secretary Inc for Phase 1, and the three parties plus
Petroliam Nasional Bhd for Phase 2.
KA Petra’s STS hub will not have an installed storage capacity, as its
capacity depends on the size of the tankers moored at its piers.
However, as an illustration, a VLCC can typically carry 300,000 cu m of
petroleum products.
Calvin comments:
Hi guys,
Until now many are still oblivious to the Mightest Oil & Gas Bull Run Thematic Stocks of Malaysia
Even Hong Kong Superman Li Ka Shing sees an Oil Boom Time in Malaysia
And he put his money where he finds real value
Li Ka Shing expect Oil & Gas Activity to Boom & Boom in Malaysia from now onward.
He is investing Rm500 Millions into A Ship to Ship Refuelling Hub
Why so?
BECAUSE THE BIGGEST SHIPS IN THE WHOLE WIDE WORLD WILL CARRY OIL FROM
SAUDI TO PENGERANG AS WELL AS FROM THE OIL FIELDS OFF PENINSULA, AND OFF
SHORE OF SABAH & SARAWAK
See
The company official says the STS hub will be able to handle up to 30 very large crude carriers (VLCCs) at any given time, compared with the existing STS operation there, which can only handle nine.
30 BIGGEST OIL CARRIERS WILL DOCK IN PENGERANG
THESE ULTRA LARGE OIL CARRIER ARE MUCH BIGGER THAN EVEN AIRCRAFT CARRIER
See
SUCH HUGE QUANTITIES OF BOTH CRUDE OIL & NATURAL GAS
WILL BE NEEDED. WE CAN EXPECT PETRONAS TO RECOMMISSION ALL REMAINING
IDLE OIL RIGS & UNPLUG ALL OIL WELLS
AND THIS IS ANOTHER REASON WHY YOU MUST BUY UP ALL VELESTO SHARES WITH EVERY SPARE RINGGIT
VLCC and ULCC
Knock Nevis (1979–2010), a ULCC supertanker and the longest ship ever built.
"Supertankers" are the largest tankers, and the largest man-made mobile
structures. They include very large crude carriers (VLCC) and ULCCs
with capacities over 250,000 DWT. These ships can transport 2,000,000 barrels (320,000 m3) of oil/318,000 metric tons.[42] By way of comparison, the United Kingdom consumed about 1.6 million barrels (250,000 m3) of oil per day in 2009.[44] ULCCs,
commissioned in the 1970s, were the largest vessels ever built, but the
longest ones have already been scrapped. By 2013 only a few ULCCs
remain in service, none of which are more than 400 meters long.[45]
Because of their great size, supertankers often cannot enter port fully loaded.[21]These ships can take on their cargo at off-shore platforms and single-point moorings.[21] On the other end of the journey, they often pump their cargo off to smaller tankers at designated lightering points off-coast.[21] Supertanker routes are typically long, requiring them to stay at sea for extended periods, often around seventy days at a time.[21]
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