Universal Terminal, which is partly owned by Chinese oil giant PetroChina Co., had planned for an IPO of up to one billion Singapore dollars (US$740 million) earlier this year, but people with knowledge of the IPO process said investor sentiment soured due to weak oil prices.

The sale of a 49% stake could raise as much as US$500 million, these people said, adding that a sale memorandum has been sent out to various interested parties. The first round of bids are due next month, one of the people said.

Universal Terminal, which operates one of the largest fuel-storage terminals in the Asia-Pacific region, is 65% owned by Hin Leong. Apart from the oil-storage operations, Hin Leong trades oil, ships fuel supplies and operates a fleet of tankers. PetroChina has a 35% stake and was planning to sell a portion of its stake during the IPO. It isn’t clear if PetroChina also wants to sell its stake during this fresh sale plan.

Hin Leong didn’t immediately respond to a request for comment.

Singapore is Asia’s largest oil-trading hub and the base of operations for some of the world’s largest energy and commodities traders. Trading activities are supported by large amounts of storage capacity, owned and operated by a mix of independent storage companies, oil traders and major oil companies.

Demand for oil and petroleum product storage in Singapore and its surrounding areas is expected to be strong because of robust fuel demand from countries like Indonesia, Malaysia and Australia, where the bulk of the fuels are exported.

However, the business is becoming highly competitive and massive investments in new terminals in the region have led to concerns about overcapacity and shrinking margins. While it is expanding, the sector may not generate the same level of cash flows as it has for the last few years, when oil prices were trending at around $100 a barrel, traders said.