Huaxin energy company to build oil storage unit in the south of China
Shanghai-based Huaxin Energy Co. has started work on a new commercial oil storage facility in China's southeastern island province of Hainan. The company will invest 10.5bn yuan ($1.6bn) in the project, which will eventually have the capacity to store 7.8 million cubic metres of commercial crude and 4.2 million cubic metres fuel oil.
During the first phase of development, Huaxin plans to build two million cubic meters of crude storage and 600,000 cubic meters of fuel oil tanks over 530 square kilometre site in the Yangpu development zone.
Once completed, Huaxin expects the facility to have an annual turnover of 172m tons of oil, with a throughput of 345m tons. The volume is set to generate healthy pre-tax revenues of around 147bn yuan ($23 billion). The facility will be mostly used by oil companies from the Middle East, Africa, East & Southeast Asia as well as the domestic market.