Belgian tanker operator Euronav on Tuesday signed a service agreement making Malaysia’s Linggi Port its supply base providing low-sulphur marine fuels and other services for ships plying East-of-Suez routes, the port operator said.
The announcement comes shortly after Euronav, one of the largest tanker companies in the world, deployed one of its two ultra-large crude carriers (ULCC) to Kuala Linggi International Port (KLIP) for floating storage with 3 million barrels of 0.2% and 0.5% low sulphur fuel oil, operator T.A.G. Marine SDN BHD said in a statement on Tuesday.
The agreement makes good on Malaysia’s ambitions to develop its maritime and bunkering industries, the statement said, in an effort to rival the world’s largest hub in neighboring Singapore.
Ship owners must cut emissions by reducing the sulphur content in fuel to 0.5% from 3.5% under the rules, which are set by the United Nations’ International Maritime Organization (IMO), and come into effect in January.
Financial terms of the agreement, which also covers related services including supplying crews and provisions, weren’t disclosed.