Storage of oil products in China has been strengthened by Titan Petrochemicals Groups announcement of strategic funding through its subsidiary China Storage.
The move will support its onshore oil storage terminal expansion plans, growing to approximately 2.6 million m3 from about 1.1 million m3 as at 31 December 2008.
The downstream logistics oil firm intends to use the proceeds of the China Storage Notes of up to HKD 312.6 million (28 million) to fund the expansion of China Storages oil terminals in.
Titan Oil Storage Investment, a wholly owned subsidiary of Titan, and investment firm Warburg Pincus are supporting the funding through the subscription of China Storage Notes.
Construction of onshore storage facilities in which Titan has invested began in 2006.
China Storages oil terminal operations now cover Nansha, Quanzhou and Yangshan.
The first of three phases of developments in all these facilities have been completed, bringing the total onshore storage capacity of these various facilities to about 1.1 million m3 by 31 December 2008.
Titan owns 50.1% of China Storage while the remaining 49.9% stake is owned by Warburg Pincus.