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Hin Leong plans $3bn oil storage investment in Asia

Hin Leong plans $3bn oil storage investment in Asia
Singapore-based oil trader and tanker owner Hin Leong has an ambitious plan to invest more than $3bn to build oil terminals and distribution facilities in emerging Asian markets, reports said.

Hin Leong is spending $2.7bn on storage and terminal assets in China and East Timor, plus projects proposed in Indonesia and Myanmar worth around $700m in total, according to Lim Oon Kuin, chairman and founder of Hin Leong.

The family business owns one of the largest oil storage terminals in Asia – 2.36m cu m Universal Terminal – and controls a fleet of more than 100 oil tankers.

“East Timor, China, Indonesia, Myanmar – they all need oil for their development. We are already a fuel supplier and we want to provide more services,” Lim told Reuters.

In Myanmar, Hin Leong plans to establish a storage and distribution base near Yangon to sell directly to end users, and the investment would start in the $100-200m range, according to Lim.

The oil trader is also planning to build oil storage and distribution units either in west Indonesia or in Papua province in the east to meet rising domestic demand.

In East Timor, an initial investment would start with 100,000 cu m of storage for kerosene, gasoline, jet fuel and asphalt. The East Timor investment could grow to $1bn, Lim revealed.

Meanwhile, Hin Leong is awaiting approval from Beijing to construct a $1.7bn storage terminal at Meizhou Bay in the southern province of Fujian. The facility could eventually store up to 41m barrels of crude oil and products.

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