Chemoil Energy, the world's largest independent supplier of marine fuels, could spend approximately $55 million (39 million) on the construction of an oil storage terminal in Panama.
Chemoil will construct a terminal at the port of Cristobal with a total capacity of about 245,000 tonnes. The terminal will take two years to build and will be able to accommodate tankers up to 110,000 deadweight tonnes and four refueling barges.
The company will select between three and four contractors for the project. Chemoil, whose customers include the world's largest shipping company A.P. Moeller-Maersk A/S, and Taiwan's Evergreen Marine, has a strategy of acquiring assets to boost margins. The company owns or leases storage facilities for oil products and will incur big savings from the terminal it says.
Chemoil's stock has slumped 22% since mid-September when the company announced third-quarter profit would be affected by its storage problems in Singapore, Asia's largest refueling stop, and hedging losses. The company will go back to normal growth in the fourth quarter, it says.