PT2SB, a joint venture between Royal Vopak, Petroliam Nasional Berhad (PETRONAS), Dialog Group Berhad (Dialog) and The state of Johor (SSI) has announced that it has signed a $1.25bn senior financing agreement with a banking syndicate of nine international banks.
The financial facilities will be used to finance the PT2SB industrial terminal in Pengerang, State of Johor, Malaysia. The construction of PT2SB started in early 2015 and is scheduled for commissioning in various phases during the first half of 2019.
This industrial terminal will predominantly serve the PETRONAS Refinery and Petrochemicals Integrated Development project (RAPID) as its main customer. PT2SB will have an initial storage capacity of 1.65m cubic meters for crude, refined products, petrochemical products and Liquefied Petroleum Gas (LPG). The marine infrastructure includes 12 berths. The draft of 24 meters can also accommodate very large crude carriers.
The project costs are estimated around $1.6bn, of which approximately 20% will be funded with equity contributions by the shareholders and approximately 80% is provided in the form of project financing through the abovementioned banking syndicate.
Jack de Kreij, Vice-Chairman of the Executive Board and CFO of Vopak, commented: “We are proud that we have been able to secure the financing for this flagship project and we are very pleased with the commitment demonstrated by nine relationship banks participating in the financing of this project. This capital efficient funding of the project also creates significant additional financial flexibility for our company.”
Source: Royal Vopak
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