Asia/Pacific News
PetroChina Singapore Acquires Port Klang Storage with Intentions of Developing Bunkering Outlet
With the aim of creating a bunker fuel supply outlet, market sources say PetroChina Singapore (PetroChina) has leased fuel oil storage tanks at Malaysia's Port Klang, Platts reports.
The sources add that PetroChina has likely leased all 220,000 cubic meters (cbm) of available capacity that the Port Klang facility has to offer, and the lease is likely to have started in March.
Whether the lease is long or short term has not been reported, but the terminal is said to be located in an area that is expected to see increased container port activity.
"It is a natural market for bunker fuel supply especially if major container lines pass through Port Klang, with shipping lines such as CMA CGM and China Shipping," said a trade source.
As an active bunker fuel supplier in Singapore and Chinese ports, sources suggest that the company is a likely candidate to fill the space within the Port Klang market that has recently been freed up as Ban Hoe Leong Marine Supplies Sdn Bhd. (Ban Hoe Leong) conducts less supply business at the port.
Currently, estimated demand at the port is said to sit at about 120,000 metric tonnes (mt) month, although Port Klang is reported to have reached an estimated high for demand of 250,000 mt per month in the past.
Market sources suggest that bunkering directly at Port Klang could save container lines long wait times at Singapore, and easing congestion at Singapore.
PetroChina is not reported to have commented on the news.
