April 02, 2013 [Fox Business] - The facility, with a capacity of 1.3 million cubic meters, is the largest commercial oil storage terminal in South Korea and has been developed by Oilhub Korea Yeosu Co. at a cost of US$500 million, CAO said in a statement.
“As Korea is CAO’s main source of jet fuel supply and located geographically close to its key customers in China, securing oil storage at OKYC’s terminal has significantly strengthened CAO’s ability to ensure certainty of jet fuel supply to China,” CAO Chief Executive Meng Fanqiu said.
CAO, Asia’s largest physical jet fuel trader, said the oil storage facility is located in the port city of Yeosu and it has signed an eight-year lease with OKYC for storing middle distillates.
CAO has a 26% stake in OKYC, Korea National Oil Corp. has a 29% stake and the remaining shareholders include SK Energy Co., GS Caltex Corp., Samsung C&T Corp. (000830.SE), LG International Corp. (001120.SE) and Seoul Line Corp.
State-owned China National Aviation Fuel Group Corp., headquartered in China, has a 51% stake in CAO, while BP Investments Asia Ltd. has a 20% stake.
