Chemoil, a major supplier of diesel and petrol to the shipping and aviation industries, is seeking to expand its storage capacity by 130,000 barrels in Los Angeles (LA).
The company's waterfront storage facility (marine terminal) has a capacity of 465,000 barrels in six tanks. One barrel equals 42 gallons.
The expansion proposal includes building two additional storage tanks and acquiring more than half an acre of a neighbouring property owned by Morton Salt Company. It expected that the tanks will be ready during 2008 and will be used soon after completion.
According to Chemoil, the company provides about 16% of the jet fuel used at LA International Airport. The company supplies jet fuel though IPC (USA), which is jointly owned by Chemoil and Itochu Corporation.
The LA expansion is needed to increase storage capacity for low-sulphur diesel fuels, which are increasingly used in the shipping, rail and trucking industries to comply with environmental regulations.
Chemoil's current facility is housed at Long Beach. The company also owns tank farms in New York, Houston, Rotterdam, Singapore and Panama. New York
Final approval is required by the Long Beach Harbor Commission and would include provisions that Chemoil adopt environmentally friendly operations at its expanded tank farm.
Chemoil recently announced the acquisition of the Helios Terminal on Jurong Island, Singapore. This will provide Chemoil with 18 fuel oil product tanks aggregating a capacity of 448,000 cubic metres and will be the company's largest owned operation to date. The acquisition was just under $40 million (29 million) and additional investment will cost $82 million. The terminal is expected to be operational in 2008.
In February 2007, Chemoil embarked on a joint venture to construct an oil storage terminal in Fujairah. The joint venture agreement with Gulf Petrol Supplies (GPS), which is 40% Chemoil and 60% GPS, will create an aggregated capacity of 314,000 cubic metres. Of which 226,000 will be used for marine fuel and the remainder is intended for the storage of clean fuel. The projected cost for expansion is $56 million. The facility will be entirely controlled by Chemoil and is also expected to be operational in 2008.
Chemoil is the largest supplier of marine bunker fuels in the Americas.