Techfast sees strong prospects for the Malaysian bunker market this year. File Image / Pixabay
A subsidiary of Malaysian manufacturing firm Techfast Holdings, which has started its diversification into the marine fuels business this year, has launched a joint venture with two other bunkering firms.
Techfast subsidiary Fast Energy has signed a deal with bunkering companies Fultonn Marine and Wise Marine to jointly purchase a bunker tanker.
Under the deal Fultonn Marine will be the registered owner and operator of the vessel, Fast Energy will pay for it and the regulatory approval- and licence-related costs and Wise Marine will pay a portion of its share of the profits to Fast Energy.
Separately, Fast Energy has agreed to supply up to 20,000 mt/month of VLSFO and LSMGO to Wise Marine over the next three years.
"The group will benefit from the current port congestion at Port Klang and other major ports in Malaysia and Singapore," Techfast said in an exchange filing announcing the move on Wednesday.
"It is also well positioned to gain from the demand expansion and recovery post the Covid-19 pandemic."