The FINANCIAL — Equinor and Global Petro Storage (GPS) have entered into a long-term agreement for a terminal and storage for LPG (Liquified Petroleum Gas) volumes in Port Klang in Malaysia.
GPS will build a new facility to execute this agreement with startup of operations planned for mid-2021. Equinor will bring LPG to the terminal and sell into the domestic market in Malaysia as well as selling volumes to markets like Bangladesh, the Philippines, India, Indonesia and Vietnam.
Equinor is already a significant LPG player with around 10 percent of the global waterborne LPG volumes.
With the new terminal and storage Equinor aims to capture a larger share of the attractive LPG market in South-East Asia.
LPG consists of the liquified gases propane and butanes and is used for transport and industrial purposes as well as cooking, hot water systems and heating. Use of LPG is recognized as being an attractive energy option for reducing greenhouse gases as well as improving indoor and outdoor air quality.
As part of the agreement, Equinor will have an option to acquire an ownership share of the new storage and terminal, where Equinor will be the only user.