Benalec Holdings and Rotary Engineering to build oil storage terminal in Johor

Malaysia’s Benalec Holdings Bhd announced that it has entered into a memorandum of understanding (MoU) with Rotary Engineering Ltd., a Singapore-listed provider of engineering, procurement and construction services (EPC). Rotary specializes in the oil and gas industry and the MoU with Benalec stipulates that the two companies will collaborate in the development of an independent oil storage terminal in southern Johor, Malaysia. Benalec will own a small stake in the 100-hectare oil storage terminal, which is part of the company’s entitlement to reclaim 1,400 hectares in Tanjung Piai and 712 hectares in Pengerang, both located in Johor. Benalec will use its expertise in marine construction in land reclamation and Rotary will build the storage tanks. Once the oil storage terminal is finished, the two firms will partner with another oil and gas company to form a joint venture. The terminal is expected to have an initial storage capacity of one million cubic meters, which will slowly be increased to three million cubic meters. (December 9, 2011)