The facility will have an initial petroleum storage capacity of 760,000 cu m, set to meet rising needs for petroleum storage in neighbouring Singapore.
The terminal is expected to be operational by the second quarter of 2015 and will cater to the storage and handling of both light and black oil products. The initial capacity will be supported by four jetties capable of accommodating VLCCs.
Oiltanking Karimun will be managed and operated by Oiltanking while Gunvor will take a minority equity stake and rent part of the capacity.
“The deal comes as a part of Gunvor's investment and Asian growth strategy,” Gunvor said in a statement.
The island of Karimun is seen as an alternative to tightening petroleum storage in Singapore, where growth has been hampered by the scarcity of waterfront and lack of land available for new expansions.
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