South China Petroleum Company will double capacity at its West Zhuhai Oil Products Terminal following approval from the board on the joint venture, of which Fortune Oil owns 37%.
A total of five new tanks with bring on capacity of 220,000 m3. Following completion the terminal will host 22 tanks and a capacity of 457,000 m3.
The estimated cost of the project is RMB 120 million (13.1 million) which will be financed using the joint venture internal resources and local bank loans. The expansion project will be subject to local government approvals and is expected to be completed in 2011.
Currently the terminal is primarily used by PetroChina, a 45% shareholder in the joint venture, for diesel and petrol storage and transshipment.
The total throughput in 2009 was 2.2 million tonnes compared to 1.9 million tonnes in 2008, a year-on-year increase of 16%. The new tanks will enable the joint venture to develop a broader customer base and a wider product base, including jet fuel and chemicals.