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Monday, June 08, 2009

Chinese trader takes floating fuel oil storage in Singapore

Monday, 08 June 2009

Reports say a Chinese trading company has purchased an oil tanker to store fuel oil in Singapore. Dow Jones Energy Service says Southern Petrochemical Co. has anchored the VLCC (very large crude carrier) Nan Fang 3 in a Singapore anchorage It quoted a trader as saying the tanker could be used to blend fuel oil to meet bunker specifications.
Southern Petrochemical is based in Guangzhou in China’s southern Guangdong province.
According to its website it traded over 4 million metric tonnes (mt) of oil and chemicals last year. Reports say the latest move shows it is expanding its operations beyond China.
The collapse in freight rates for VLCCs and supertankers has opened opportunities to use them to store product.
A division of US bank JPMorgan this week was reported to have hired a newly built supertanker to store fuel oil off Malta.
In Singapore, meanwhile, the oil trading firm Hin Leong announced this month that it is considering expanding its oil terminal capacity in Singapore to 3 million cubic metres (m³) from the current 2.3 million m³.

Source: Tankerworld