A joint venture between TonenGeneral Sekiyu K.K and Qube Holdings seeks to develop a fuel storage facility at Port Kembla in New South Wales, Australia.
The facility will have a potential capacity of 230,000 kilolitres and it is expected to be complete and in service in mid to late 2017.
The port has both shipping and logistical advantages enabling low supply chain and operating costs for delivery to much of the region including south and south west Sydney.
In addition there are also plans to develop a fuel marketing and distribution business to capitalise on the opportunity to supply fuel products from the new import terminal.
The total capital expenditure for the fuel storage facility and the acquisition of Petro National Pty Limited in Australia is expected to be around AUD150 million (€98.7 million). The majority of the funding will be required in 2016 and 2017.
Australia is a major export market for TonenGeneral’s refined products thanks to the growing import demand over the past several years.
The project will enhance TonenGeneral’s petroleum products supply chain in Australia together with Qube.