PETALING JAYA: Straits Inter Logistics Bhd has received the approval from Marine Department Malaysia for its unit Victoria STS (Labuan) Sdn Bhd to develop an integrated offshore ship-to-ship (STS) energy transhipment hub within the port limits of Victoria Bay, Labuan.

       Victoria STS is a 70%-owned subsidiary of Fajar Maritime and Logistics Sdn Bhd, a 60%-owned subsidiary of Straits, it said in a statement yesterday.

       “We are very excited about this new STS transhipment hub as it is a milestone, ” said managing director Datuk Seri Ron Ho Kam Choy in a statement.

       "Straits has over the years diligently established its comprehensive infrastructure and widened its customer base and this STS hub will kickstart Straits’ foray into the sustainable and alternative energy space.

       "With this project as a start, Straits aims to be a major player in the sustainable and alternative energy industry in addition to its current fuel bunkering and port operation business," Ho said.

       The STS hub will be Straits’ energy flagship project which will be located within the port limits of Victoria Bay deep water area spanning a vast 3,309 hectares supporting an initial six STS berths with safe water depths of up to 30 meters.

       The development will advance the introduction of state-of-the-art multi- functional energy transhipment facilities that will be able to accommodate LNG carriers up to the size of a Q-Max and Very Large Crude Carriers (VLCC).

       Straits’ plan to develop the STS Hub is set to be one of the largest offshore Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG) energy transhipment hubs in Asia.

       The STS hub is also strategically located within the vicinity of Labuan Liberty Port which is managed and operated by Megah Port Management Sdn Bhd (MPM), a 51% owned subsidiary of Straits.

       The first phase of the STS hub will be to develop a modern anchorage-based and Single Point Mooring system infrastructure supporting up to six Deepwater Mooring Berths.

       This infrastructure will streamline cargo compatibility with LNG, LPG, Liquefied Ethylene Gas (LEG) and Bulk Petroleum and Oil cargoes. The STS hub is slated to commence operation by the fourth quarter of 2021.