Diesel shortages in China have propelled the country's petroleum storage and supply business, resulting in Longwei Petroleum Investment Holding securing a $20.1 million (15.1 million) petroleum storage contract.
Longwei says the contracts for its Gujiao storage facility represent about 19,000 tonnes of petroleum.
The company adds that municipal governments in China have been cutting off electricity supplies to meet government emissions targets. This has caused a surge in demand for electricity from diesel generators, which has in turn drained diesel supplies.
Chief financial officer Michael Toups says Longwei currently maintains a 90-day supply, which allows it to ensure consistent supply and react quickly to demand.