PetroChina Co has bought a 35% stake in an oil storage facility in Singapore
PetroChina Co., China's largest integrated oil firm, has bought a 35% stake in an oil storage facility in Singapore for $160 million, said China National Petroleum Corp., the unlisted parent of PetroChina.
This would be PetroChina's first investment in a storage facility overseas, and will help boost the company's trading portfolio, according to a statement posted on CNPC's website dated Feb. 24.
The facility, called the Universal Terminal, has a storage capacity of 2 million metric tons. It will used for storing downstream oil products such as gasoline, diesel and jet fuel.
Total investment of the facility is estimated at $455 million. It is expected to start operation by the end of 2007.
Universal Terminal, situated in western Jurong Island in Singapore, is 65% owned by Singapore's private trading firm Hin Leong Trading Ltd.
Singapore is the world's third-largest oil trading center, after New York and London.