To move their VLCCs to Tanjung Pelepas or other nearby ports
Malaysia has ordered Hong Kong-listed Titan Petrochemicals and other shipping firms using supertankers to store crude at the port of Pasir Gudang to relocate by the end of the month, industry officials said , although the reason was unclear.
As many as eight very large crude carriers (VLCCs), which together can hold up to 16 million barrels of oil, are currently anchored off the port.
The Malaysian government has ordered shipping companies to move their VLCCs to Tanjung Pelepas or other nearby ports, said an industry official using the Pasir Gudang port.
Port authorities could not be immediately reached for comment.
Titan Petrochemcials, which has the most supertankers anchored at the port, confirmed it was contacted by port authorities to move its vessels.
“Titan is committed to its FSU (floating storage unit) business and relocation is already in progress in agreement with our customers,” said an official with the company, which has five VLCCs at Pasir Gudang.
Malaysia allocates two-year operating licenses for shipping companies to anchor supertankers off the port of Pasir Gudang. The blocks, however, are sometimes rented out for a profit to other shipping companies.
“I don’t know why they are being asked to leave, but I think it probably has something to do with disputes over licenses,” the industry official said.
“My guess is the long-term owners won’t be forced to move, but the ones who are renting them out to third parties will be made to hand over their licenses in the end.”
Source: Reuters
