Straits Inter Logistics Berhad ('Straits'), a Bursa Malaysia Listed Company, announced today that it has received approval from Marine Department Malaysia for Victoria STS (Labuan) Sdn Bhd ('Victoria STS') to develop an integrated offshore Ship-to-Ship (STS) Energy Transhipment Hub within the port limits of Victoria Bay, Labuan. Victoria STS is a 70% owned subsidiary of Fajar Maritime and Logistics Sdn Bhd, which in turn is a 60% owned subsidiary of Straits.The STS hub will be Straits' energy flagship project which will be located within the port limits of Victoria Bay deep water area spanning a vast 3309 hectares supporting an initial six (6) STS berths with safe water depths of up to 30 meters. The development will advance the introduction of state-of-the-art multi-functional energy transhipment facilities that will be able to accommodate LNG carriers up to the size of a Q-Max and Very Large Crude Carriers (VLCC).
Victoria Bay is strategically located along the international shipping and energy trade routes. Straits' plan to develop the STS Hub is set to be one of the largest offshore Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG) energy transhipment hubs in Asia. The STS hub is also strategically located within the vicinity of Labuan Liberty Port which is managed and operated by Megah Port Management Sdn Bhd ("MPM'), a 51% owned subsidiary of Straits.
The STS hub will be highly synergistic to Straits' existing operations, leveraging on Straits' bunkering and port services.
The first phase of the STS hub will be to develop a modern anchorage-based and Single Point Mooring system infrastructure supporting up to six (6) Deepwater Mooring Berths. The infrastructure will streamline cargo compatibility with LNG, LPG, Liquefied Ethylene Gas (LEG) and Bulk Petroleum and Oil cargoes. The STS hub is slated to commence operation by the 4th Quarter of 2021.
To ensure the success of the STS energy transhipment hub, Victoria STS has joined hands with two key partners, namely MISC Maritime Services Sdn Bhd ("MMS") and STS Marine Solutions (Bermuda) Ltd ("STSM") as strategic collaboration partners in the development of the hub. In the earlier planning stage, both MMS and STSM have separately signed Memorandum Of Understanding (MOU) with Victoria STS with a view to facilitate further Definitive Agreements when the STS hub materialised.
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