4.7 C
Monday, March 8, 2021
Home The Weekly MABUX Bunker Index Sinopec eyes HLT's Universal Terminal

Sinopec eyes HLT’s Universal Terminal

Chinese state energy company Sinopec, Asia's largest refinery, is in early-stage talks with Hin Leong Trading Pte Ltd to buy a stake in an oil storage terminal that is partly owned by the Singapore trader, according to Reuters.

The size of the stake, as well as the potential price, are not yet known. The sale could provide a cash injection for Hin Leong Trading, one of Asia’s biggest independent oil traders, which has been struggling under the weight of its US$385 billion debt to 23 banks.

HLT is the parent company of Ocean Bunkering Services (OBS), a prominent bunker supplier in Singapore. The financial implosion of HLT comes at a time when tankers, especially Very Large Crude Carriers (VLCCs) are enjoying very firm earnings for trading and storage.

The impact of the potential new deal between Sinopec and HLT is crucial for the bunker industry and especially for ship bunkers in Singapore. With questions over whether HLT's bunkering arm can survive in its present form.

Sinopec, which owns several storage facilities outside China - in Rotterdam, Antwerp and Fujairah - has long been looking for more storage sites to boost its global trading profile, according to the company.

Of Hin Leong Group’s assets, which also include about 130 oil tankers, the stake in the Universal Terminal is the most attractive to potential investors, said Reuters report.

“Sinopec is aware of the good asset quality of Universal Terminal, but the question is at what price and if the terminal can come clean of creditors’ debt claims,” stated Sinopec's official.

Latest Posts

SITC profit up 60% in 2020

SITC International continued its profitable streak as container rates spiked in 2020 with the Hong Kong-listed parent of the Chinese intra-Asia carrier SITC Container...

DP World and partners to build Indonesian container port

DP World alongside its partner Caisse de dépôt et placement du Québec (CDPQ), a global investment group, have signed a long-term agreement with Indonesia’s...

PhilaPort breaks ground on new distribution centre

The new PhilaPort Distribution Center will fuel the next phase of development for one of the fastest-growing ports in America, according to a company...

Danes take another step toward methanol as a marine fuel

Danish marine technology company Alfa Laval has announced that it will begin large-scale tests with methanol as a marine fuel with its partners at...

Brazilian port gets green light to handle larger vessels

The Port of Santos has received approval from the Brazilian Navy to receive 366m container vessels with a capacity of 14,000TEU, which are the...