The construction of the oil storage facility on Changxing Island in Dalian, with a total capacity of 7.19 million cubic meters, is expected to be completed in two phases. The estimated capacity of Phase 1 and 2 will reach up to 3.51 million cubic meters and 3.68 million cubic meters, respectively. The facility will be equipped with 13 berths to accommodate vessels from 1,000 to 300,000 DWT.

Completion of the project will be delayed as a result of the Chinese government’s adjustment of its design and requirements for fire and general safety, which extends the review of the project. Land preparation work for the project has been completed. The Group expects approval to be granted for Phase 1 and the completion of construction by the end of 2015. Construction of Phase 2 is projected to be completed by the end of 2016.

The construction of an oil storage facility on Waidiao Island in Zhoushan, with a total capacity of 3.16 million cubic meters, will be completed in two phases. Phases 1 and 2 of the project will have a capacity of 1.94 million and 1.22 million cubic meters, respectively. The facility will be equipped with 13 berths which can accommodate vessels from 1,000 to 300,000 DWT. The Group has commenced construction of Phase 1, and commercial operations are projected to commence around the end of 2014 or first half of 2015. Commercial operations of Phase 2 will take place around the end of 2015 or the first half of 2016. 

Leveraging its strategic geographic location, the storage facilities will generate stable rental income for the Group and will enable synergies with the Group’s ITB business and Marine Transportation business for better economies of scale. They will also contribute significantly to the Group’s operational performance on the whole by enhancing the quality and efficiency of its bunkering and crude trading business.