OREANDA-NEWS. August 15, 2013. China Aviation Oil is leasing approximately 170,000 cubic meters of tank storage at the Horizon Terminal in Singapore, market sources said.

The space will become available after Brightoil Singapore's contract expires at the end of August, the sources added.

Brightoil Singapore will, however, continue with its other contract with Horizon for another 170,000 cu m of storage for the next three to five years, sources said.

CAO is likely to have paid the market rate of about USD6.50/cu m for the tank space, some of which will be used to store fuel oil, traders said.

Horizon Terminal declined to comment, while CAO and Brightoil did not respond on the issue as yet.

In April, while announcing its first-quarter results, CAO's CEO Meng Fanqiu said that its "portfolio of other oil products, namely petrochemicals, fuel oil and gasoil businesses achieved robust growth during the quarter and contributed significantly to the gross profit" and that the company plans to develop these businesses going forward. He had added that CAO would expand its jet fuel supply and trading activities in Asia Pacific, Europe, North America and the Middle East.