Abu Dhabi has agreed to build a $6.76bn facility in Johor state, Malaysia, for the storage of oil close to the emirate’s main end markets in Asia.

A memorandum of understand (MoU) was signed between Abu Dhabi’s state-owned International Petroleum Investment Company (Ipic), 1MY Strategic Oil Terminal (1MY) and two other Malaysian entities to build a storage facility for up to 60 million barrels of crude oil.

The location of the project at Tanjung Piai in Johor state “allows for future agreement on building a refinery and petrochemical plants”, the UAE’s official Wam news agency said.

A second MoU was signed between Aabar Investment and 1Malaysia Development Berhad (1MDB) to set up a joint $5.79bn fund for investments in Malaysia, Abu Dhabi and other countries.