China Aviation to Invest in Oil Storage Terminal in South Korea
OREANDA-NEWS. October 13, 2011. China Aviation Oil (Singapore), Asia's top jet fuel buyer, is buying a stake in an oil storage terminal in Yeosu, South Korea.
Oilhub Korea Yeosu Co. will build and operate the 8.18 million barrels terminal to store oil products and crude. Of the total, the terminal will store 4.22 million barrels of products and the remaining will be crude, China Aviation said in a statement.
Korean National Oil Corporation (KNOC) is the largest shareholder with a 29 percent stake, CAO will hold 26 percent and SK Energy and GS Caltex will hold 11 percent each, it said.
The remaining shares will be held by companies such as Samsung C&T Corporation and LG International, the company said.
Construction of the terminal began in February and is expected to be completed by late 2012. CAO will be leasing tankages of the facility to store middle distillates on a long-term basis, it said.
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