Dutch energy storage firm Vopak will expand the capacity of its Malaysian joint venture, Pengerang Terminals (Two) Sdn Bhd (PT2SB), by 272,000 m3 to support the storage of biofuels, feedstocks, and related products.

The new capacity will be industrially integrated with a biorefinery operated by an existing customer and is supported by a long-term take-or-pay agreement, as per the company’s half-yearly results released on Wednesday.

Commissioning is targeted for mid-2028.

The total investment of €282 million, with Vopak’s share at €72 million, is expected to contribute to the company’s long-term cash flow and aligns with its broader strategy to develop infrastructure supporting the energy transition in key industrial hubs.

“This investment aligns well with our strategy to accelerate towards infrastructure that supports energy transition while further strengthening the industrial position PT2SB has in the Singapore straits,” it said.

Vopak posted a net profit of €318.6 million in the first half of 2025, up from €212.5 million recorded for the same period last year.

Petronas‘ subsidiary has a majority stake in PT2SB.