Brightoil Petroleum's Zhoushan terminal project in China will build more storage capacity than expected.
Following a non-legally binding Letter of Intent (LOI) with Zhoushan Municipal Government the Hong Kong-based marine fuel supplier is looking at increasing the capacity from the original planned 2.2 million m³ storage for oil products to as much as 5.5 million m³.
Zhoushan City, on the southeast coast of China, has a strong geographic advantage for building a strategic storage and logistic hub for petroleum products with access to deep rivers and well-linked cities.
Zhoushan is one of the four strategic oil reserve bases of the PRC and is traditionally an important oil transfer base, Sit Kwong Lam, chairman and CEO of the Brightoil Group, comments.
The expected total investment for the Zhoushan terminal project is approximately RMB/CNY 7,100 million (715.6 million).
This is broken down into
construction of oil storage facilities which will be 100% owned by the Brightoil group, and the construction of terminal facilities which will be owned by a joint venture with Zhoushan Port Group.
