With land scarcity hindering expansion of Singapore storage, Middle East producers are developing storage hubs in other Asian centers – in part motivated by a need to solidify the Middle East’s grip on the Asian market as Russia expands its East Asia hydrocarbons presence.
On 12 March, Shaikh Muhammad bin Zayid Al-Nahyan, Crown Prince of Abu Dhabi, and Malaysian PM Najib Razak signed two intergovernmental Memoranda of Understanding (MOUs). One paves the way for a $7bn plan to install 60mn barrel crude storage capacity at Tanjung Piai in Malaysia’s Johor state (neighboring Singapore). The plan allows for the future addition of a refinery and petrochemicals complex. Abu Dhabi’s state-owned investment firm IPIC and a consortium including Malaysia's 1MY Strategic Oil Terminal are tasked with implementing the plan. The second MOU joins the UAE’s Aabar and Malaysia Development in establishing a nearly $6bn investment fund. (CONTINUED - 374 WORDS)