Asia/Pacific News
Japanese Refiner Enters Joint Venture for Australian Fuel Storage Facility
Japan's second largest refiner, TonenGeneral Sekiyu, has entered into a joint venture with logistics company Qube Holdings to develop fuel storage facilities in Australia, Platts reports.
The move is purportedly an attempt to take advantage of Australia's growing transport fuel imports from the Asia Pacific region.
"The chronic shortage of fuel storage capacity in Australia presents a compelling investment opportunity, the appeal of which has only increased as local oil refineries close and Australia moves to a substantial reliance on imported fuel," said Qube Managing Director Maurice James.
Japan is reportedly the third largest exporter of transport fuel to Australia, while TonenGeneral Sekiyu also made up 12 percent of the country's transport fuel imports in 2014.
Australia will also continue to be a major export market for the company in the future, according to TonenGeneral Sekiyu President Jun Mutoh.
The two companies said that they would each own half of the venture, with their first project to be a facility in Port Kembla with an expected capacity of 230 million litres.
According to Qube, the venture has already received planning approvals for parts of the project, and the storage facility is expected to be commissioned in the second half of 2017.
There are also reportedly plans to acquire National Terminals' assets and fuel marketing and distribution company Petro National, with the three activities expected to cost A$150 million ($74 million).
Rising competition form Asian players is said to be behind a decline in the number of Australian refiners in recent years.
Last year, it was reported that BP woud close its Bulwer Island refinery in Brisbane in 2015, leaving the country with just four refineries.
