Singapore oil-storage demand drives area plans

The strength of the Singapore oil-supply hub has led to the firming-up of refinery and terminal plans close by in southern Malaysia

Singapore's oil traders and storage terminal operators did not exactly shrug-off the world’s economic difficulties, but they felt less pain than most. Flows through the Singapore hub have continued to grow, although traders say margins have been trimmed, while storage fees have increased. But Singapore’s strength has given confidence to the backers of plans for competing oil installations in Johor, the southernmost state of Malaysia, separated from Singapore only by the narrow Johor Strait. In May, state-owned Petronas firmed-up its plan to build a world-scale refinery and petrochemicals complex in southern Johor, with a start-up target of end-2016. The refinery will have a capacity of 300,0