Trader and shipowner Vitol is building a small refinery in Malaysia to produce low-sulphur fuel oil (LSFO) for vessels.
The plant will feature a crude distillation unit to process 30,000 barrels per day, according to Vitol Asia's president and CEO Kho Hui Meng.
It is located at Vitol's oil storage terminal at Tanjung Bin, he told the Business Times.
China National Petroleum Corp (CNPC) is handling construction, moving a second-hand crude unit from China.
The refinery will be completed in May 2020.
It is designed to complement Vitol's Fujairah refinery in the UAE, which is also producing LSFO.
The Malaysian plant will be able to process a variety of low-sulphur oil.
