Vopak invests in LPG storage facility in Singapore

The LPG facility, located in Banyan terminal at Jurong Island, will come onstream with an initial capacity of 80,000 cu m. Construction of the facility is scheduled to be completed in the first quarter of 2016.

“This LPG facility not only caters to the rising petrochemical needs of alternative and cost effective feedstock in Singapore, it also has the potentital to lead in the facilitation of regional imports,” said Eelco Hoekstra, chairman of the executive board and ceo of Royal Vopak.

“Asia's appetite for LPG is growing. Supply developments in the US, the Middle East and potentially Australia will cover a growing LPG demand in Asia. As such, we see the opportunity to capture these imports with an independent LPG terminal in the region,” he commented.

Vopak has signed a contract with oil major ExxonMobil as its first anchor customer for this facility.

The LPG storage facility will be connected via pipeline to nearby plants and will allow for LPG import and distribution in Jurong Island efficiently.

“Singapore is a natural choice as it is home to several large petrochemical complexes and we already have an established presence supported by excellent relationships with local authorities. Most importantly, building on the success of Singapore as an oil hub, there is potential for a regional hub for LPG and we are keen to be part of this growth,” Hoekstra said.

Vopak will have close to 3.3m cu m of combined storage capacity in Singapore with the completion of all the recently announced projects.