SINGAPORE, SINGAPORE--(Marketwired - June 12, 2013) - Gunvor Group together with Oiltanking GmbH announce the construction of a greenfield terminal, Oiltanking Karimun, on the island of Karimun, Indonesia. The facility, which will have an initial petroleum storage capacity of 760,000 cbm, will meet the incremental petroleum storage needs of Greater Singapore. Oiltanking Karimun will be managed and operated by Oiltanking as an independent commercial storage facility. 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.
As an alternative to tightening petroleum storage in Singapore, the island of Karimun has been selected due to its proximity to Jurong Island, Singapore's industrial petroleum and petrochemical hub, and existing ship-to-ship operations off the coast. Karimun further offers favorable nautical conditions, such as easy access to VLCC size vessels, and availability of ready-to-build land.
While Singapore's storage capacity has been growing steadily over the last decade, further growth is hampered by the scarcity of waterfront and lack of land available for new expansions.
The terminal, which is expected to be operational by second quarter 2015, 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 vessels of up to VLCC dimensions. The terminal has ample land for further expansion.
Gunvor Group is one of the world's largest independent commodities trading houses by turnover, creating logistics solutions that safely and efficiently move physical energy from where it is sourced and stored to where it is demanded most. With strategic investments in energy infrastructure-refineries, pipelines, storage, terminals and coal mining-Gunvor further generates sustainable value across the global supply chain for its customers. More information can be found at www.gunvorgroup.com or @Gunvor.
Oiltanking GmbH is a subsidiary of Marquard & Bahls AG, Germany, a leading petroleum company, privately owned. Oiltanking is the second largest independent tank storage provider for petroleum products, chemicals and gases worldwide. The company owns and operates 75 terminals in 23 countries within Europe, North and South America, Middle East, India as well as Asia. Oiltanking has an overall capacity of 20.3 million cubic meters. For further information please visit www.oiltanking.com.