Thursday, August 23, 2012

CAO joint venture abandons tank terminal project


http://tankstoragemag.com/industry_news.php?item_id=5306

Asia's largest buyer of jet fuel, China Aviation Oil (CAO), has scrapped plans to build an oil storage terminal in Malaysia, Reuters reports.

In a partnership with Malaysian company Centralised Terminals, part of MISC and Dialog Group, CAO announced in October 2011 that it planned to construct a 380,000m3 storage tank terminal at Tanjung Langsat Port in Johor state by the end of 2013.

CAO said at the time that all the available capacity would be leased and used to store middle distillates and fuel oil for a minimum of seven years.

However, as the project is a greenfield site, the joint venture has now mutually decided to terminate the agreement, saying the terminal would have taken a longer time than originally thought to complete.

CAO is continuing to penetrate new regions as part of its four-year expansion plan; it recently purchased storage space in both Singapore and South Korea.

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