Tanjung Langsat Terminal Phase 1 Commences Operation

23 September 2009 , By BERNAMA

KUALA LUMPUR, Sept 23 (Bernama) -- Langsat Terminal (One) Sdn Bhd (LTOSB) has successfully commenced operations of the first phase of its tank terminal project.

The terminal received its first shipment of oil and gas from its customer, Trafigura Pte Ltd, on Sept 19, said Dialog Group Bhd in an announcement to Bursa Malaysia on Wednesday.

LTOSB is a joint venture project between Dialog, MISC Bhd and Puma Energy Asia Pacific B.V., which is part of the Trafigura group.

The terminal, located in Tanjung Langsat, Johore, is not only the second tank terminal project for Dialog but its second venture with Petronas.

It said the terminal has a total capacity of 400,000 cubic meters (cbm), with the development planned for completion in two phases.

The total capacity for Phase 1, which was officially completed on September 16, is 130,000 cbm for storage of Naphtha/Middle Distillates.

Phase 2 of the project is targeted for completion by March 2010 with a tank capacity of 270,000 cbm for storage of fuel oil, it said, adding that the company is also planning to construct additional tanks on its existing land.

Dialog said this development is part of the group's business strategy to own terminals and tankage facilities which would result in an increase in its sources of sustainable and recurring income.

The company recently partnered Vopak Asia Pte. Ltd to jointly study the feasibility of developing an independent deepwater petroleum terminal for oil products in Pengerang, also in Johore.

The Pengerang region is located at the southern tip of Johore, close to international shipping routes and Singapore's international petroleum hub.

The independent deepwater petroleum terminal will be Dialog's third terminal and will synergise with Dialog's investment in tankage facilities in Kertih, Terengganu and Tanjung Langsat, Johore.