Malaysia's government has ordered seven floating storage facilities anchored off the south-eastern port of Pasir Gudang to leave by the end of this month, industry sources said on Monday, Reuters reports. The floating storage facilities have a combined capacity to hold about 1.9 million tonnes of crude or fuel oil.
These players must find alternative homes for their vessels either at nearby Tanjong Pelepas - also a floating storage hub - Indonesia's Karimun island, or in international waters.
Some could destock their cargoes and exit the floating storage market, due to higher costs at the alternative locations, they added.
When contacted, a senior Malaysian government source confirmed the directive, but declined to give details or the reasons for the move.
These players must find alternative homes for their vessels either at nearby Tanjong Pelepas - also a floating storage hub - Indonesia's Karimun island, or in international waters.
Some could destock their cargoes and exit the floating storage market, due to higher costs at the alternative locations, they added.
When contacted, a senior Malaysian government source confirmed the directive, but declined to give details or the reasons for the move.
