Belgian tanker operator Euronav has signed a service agreement under which Malaysia’s Linggi Port will become its low-sulphur marine fuel supply base.
The port would also provide other services, including supplying crews and provisions, for the company’s ships sailing on the East of Suez routes, Reuters referred to a statement released by the port operator.
The contract would help Malaysia develop its maritime and bunkering industries, with an aim to rival the world’s largest hub in neighboring Singapore. The parties did not reveal the financial terms of the agreement.
The deal comes only months after Euronav sent one of its two ultra-large crude carriers (ULCC), the 2003-built Oceania, to Kuala Linggi International Port (KLIP). Namely, the company purchased a total of 420,000 metric tons of compliant fuel oil and marine gasoil and used the ship to store this inventory because of its size and related economies of scale.
According to AIS data provided by Marine Traffic, the 441,585 dwt tanker arrived at the port of Sungai Linggi in late September, where it would be used as floating storage with 3 million barrels of 0.2% and 0.5% low sulphur fuel oil.
In line with Euronav’s strategy, a new USD 100 million revolving loan facility has been secured with a club of banks in order to assist funding of the compliant fuel inventory on the Oceania.