Kuala Lumpur · Singapore · Rotterdam · Houston · Fujairah
Flagship Project · East Malaysia
A proposed deepwater storage and marine terminal designed to strengthen fuel supply security, cut logistics costs and support industrial growth across East Malaysia. Asian Oil Storage leads the project’s planning, proposal briefings and preliminary infrastructure consulting.
Planning stage: pre-FEED and environmental impact assessment scoping. All figures are planning estimates, subject to engineering, regulatory approval and investment decisions.
480,000 m³
Phase 1 storage capacity
840,000 m³
Masterplan capacity
20
Tanks at full build-out (12 in Phase 1)
42 ha
Site footprint
1.2 km
Jetty trestle to −15.0 m chart datum
80,000 DWT
Phase 1 deep-sea berth
~RM 1.4 billion
Phase 1 estimated investment
2030
Phase 1 commissioning target
Estimates at AACE Class 5 (concept screening) accuracy, typically −30% to +50%.
Project Overview
The Borneo Oil Storage Terminal is a proposed bulk liquid storage and marine terminal on a deepwater coastal industrial site in East Malaysia. It is designed to receive refined products and marine fuels by deep-sea tanker, store and blend them, and distribute them by coastal tanker, barge, truck and, in future, pipeline to markets across Sabah, Sarawak and the wider region.
Asian Oil Storage’s role to date covers planning, proposal briefings and preliminary infrastructure consulting. The work has run from site screening and concept development to the terminal masterplan, marine interface concept and a phased development programme. It draws on our infrastructure consulting and terminal planning practices.
The masterplan provides 840,000 m³ in 20 tanks, developed in two phases:
Phase 1
480,000 m³
12 tanks, one deep-sea berth and two coastal and barge berths
Phase 2
+360,000 m³
A further 8 tanks and a second deep-sea berth, to be built as demand grows
Background
East Malaysia covers a large area with long coastlines, dispersed population centres and a growing industrial base. Much of its fuel supply still depends on:
Small, ageing coastal depots with limited tankage, often unable to take economically sized cargoes
Long supply chains that rely on frequent small-parcel deliveries by coastal tanker
Limited buffer stocks, which leave supply exposed to weather, shipping disruption and refinery outages
Growing demand from industry, transport, aviation and marine activity
A modern, deepwater terminal of sufficient scale can take larger, more economic cargoes, hold strategic buffer stocks and act as a distribution hub for the smaller depots across the region.
Strategic Objectives
Provide buffer storage that protects East Malaysian fuel supply against shipping and refinery disruptions.
Replace frequent small-parcel deliveries with fewer, larger deep-sea cargoes, cutting the cost per tonne delivered.
Provide a fuel supply base for industrial parks, ports, airports and marine activity.
Provide dedicated capacity for biodiesel (FAME) blending in line with Malaysia’s biodiesel programme, and design flexibility for future lower-carbon fuels.
Create construction and permanent jobs, and train a local technical and operational workforce.
Supply VLSFO and marine gasoil to vessels operating in regional waters.
Terminal Masterplan
The 42-hectare site is planned in functional zones.
| Zone | Contents | Phase |
|---|---|---|
| Tank farm A | 12 tanks in bunded groups | Phase 1 |
| Tank farm B | 8 tanks, reserved plot | Phase 2 |
| Process and utilities | Pump stations, blending skids, firewater pumps and storage, nitrogen, power substation, wastewater treatment | Phase 1, sized for Phase 2 |
| Loading | 4-bay truck loading rack, with space for 4 more bays | Phase 1 / 2 |
| Marine | Jetty trestle, deep-sea berth, 2 coastal/barge berths; second deep-sea berth | Phase 1 / 2 |
| Administration and control | Control building, laboratory, workshops, warehouse, emergency response station | Phase 1 |
| Buffer and environment | Retained vegetation buffer, drainage retention ponds, landscape screening | Phase 1 |
Storage Infrastructure
| Phase | Tanks | Capacity each | Total | Indicative service |
|---|---|---|---|---|
| Phase 1 | 4 | 60,000 m³ | 240,000 m³ | Diesel / gasoil, VLSFO (heated) |
| Phase 1 | 8 | 30,000 m³ | 240,000 m³ | Gasoline, jet fuel, marine gasoil, FAME |
| Phase 1 total | 12 | 480,000 m³ | ||
| Phase 2 | 4 | 60,000 m³ | 240,000 m³ | Allocated according to demand |
| Phase 2 | 4 | 30,000 m³ | 120,000 m³ | Allocated according to demand |
| Phase 2 total | 8 | 360,000 m³ | ||
| Masterplan total | 20 | 840,000 m³ |
Marine Facilities
The site was chosen partly because deep water lies relatively close to shore. That keeps the jetty trestle to about 1.2 km and avoids major capital dredging.
| Element | Phase 1 | Phase 2 |
|---|---|---|
| Jetty trestle | 1.2 km to −15.0 m chart datum | - |
| Deep-sea berth | 1 berth, up to 80,000 DWT | Second berth, up to 120,000 DWT |
| Coastal / barge berths | 2 berths, 1,500–10,000 DWT | - |
| Loading arms | 12-inch and 16-inch with emergency release | Additional arms for Berth 2 |
| Typical loading rate | 2,500 m³/h at deep-sea berth | 3,500 m³/h at Berth 2 |
Phase 1 includes about 6.5 km of transfer pipelines:
Future connectivity: An interconnection corridor of up to 18 km to regional industrial users is being studied, subject to demand and approvals.
Engineering
The preliminary engineering has set the project’s design basis.
| Discipline | Key considerations |
|---|---|
| Geotechnical | Coastal soils assessed through desktop study and initial borehole data. Tank foundations likely to need ground improvement or piling, to be confirmed through a full site investigation |
| Civil | Site levelled above the design flood level with climate change allowance; surface-water drainage designed for tropical rainfall intensity |
| Mechanical | Tanks to API 650; pumps sized for Phase 2 flow rates where economic |
| Electrical | Grid connection with backup generation for critical loads; rooftop and ground-mounted solar planned for the administration and warehouse buildings |
| Instrumentation and control | SCADA and terminal management system aligned with the group platform; safety instrumented systems to IEC 61511 |
| Fire protection | Fixed foam systems, firewater network, monitors, and a firewater reservoir sized for the worst-case fire scenario |
| Process safety | HAZID completed at concept stage; HAZOP and LOPA to follow in FEED |
Environmental Considerations
Borneo’s coasts are ecologically important. Environmental considerations have shaped site selection and the masterplan from the start.
Development Phases
2024
Opportunity framing, early stakeholder engagement, 14 proposal briefings over 2024–2025
Completed
2024–2025
Site screening (3 sites), demand assessment, concept development, terminal masterplan, marine concept, Class 5 estimate
Completed
2026
Design basis, site investigation planning, EIA terms of reference, refined estimate
Current stage
2027 (target)
Front-end engineering design, EIA submission, permits, procurement strategy
Planned
2028 (target)
Financing, contracting, investment decision
Planned
2028–2030 (target)
Site preparation, tank construction, jetty, utilities
Planned
2030 (target)
Commissioning, start-up, operational readiness
Planned
From 2032, subject to demand
Additional 360,000 m³ and second deep-sea berth
Future
AACE Class 5 estimates. Final figures will depend on site investigation, FEED and market conditions.
| Scope | Estimated investment |
|---|---|
| Phase 1 (480,000 m³, jetty and utilities) | Approx. RM 1.4 billion |
| Phase 2 (360,000 m³ and second berth) | Approx. RM 0.9 billion |
| Programme total | Approx. RM 2.3 billion |
Asian Oil Storage’s Role
Asian Oil Storage has led three streams of work:
Our engineering team in Kuala Lumpur is doing this work alongside the operations and technical specialists who run our four international terminals. What we have learned from operating in Singapore, Rotterdam, Houston and Fujairah feeds directly into the design of a terminal in Borneo, which will also connect with our Singapore hub.
Expected Regional Impact
The estimates below come from preliminary studies and will be refined through the EIA and social impact assessment.
~1,100
Jobs at peak construction
~85
Permanent operating roles in Phase 1
| Area | Expected impact |
|---|---|
| Supply security | Buffer storage equal to several weeks of regional demand for key fuel grades |
| Logistics efficiency | Economically sized deep-sea cargoes, lower delivery costs and fewer coastal tanker movements |
| Employment | About 1,100 jobs at peak construction; about 85 permanent operating roles in Phase 1 |
| Local supply chain | Contracting opportunities for local civil works, fabrication, services and logistics |
| Skills | Operator and technician training programmes, with priority for local candidates |
| Industrial development | Fuel supply base for industrial parks, ports and power generation |
| Cleaner fuels | Biodiesel blending capacity and flexibility for future lower-carbon fuels |
Future Expansion
The masterplan is designed to keep future options open:
Next steps
We welcome conversations with potential partners, offtakers, industrial users, financial institutions and government stakeholders interested in the Borneo Oil Storage Terminal.
