Singapore Corporate News - 4 Oct 2007

Chemoil to build terminal in Panama

MARINE fuel supplier Chemoil plans to build a storage terminal in the bunkering hub of Cristobal, Panama.

The terminal will have a total capacity of 245,000 tonnes, or 1.56 million barrels, up from Chemoil's current leased capacity of 65,000 tonnes.

The new facility will 'greatly increase Chemoil's storage capacity' while 'simultaneously eliminating high leasing costs', Chemoil said yesterday.

The design will provide maximum operational flexibility, with a pier that will accommodate tankers of up to 110,000 deadweight tonnes and four bunker barges simultaneously.

Chemoil said this will allow it to 'substantially increase its bunkering and cargo sales while reducing per unit operating costs'.

The terminal will be used initially to store marine fuel but will also be able to store other fuel, like gasoline and diesel, for the growing Panamanian domestic market.

It will be built on 10 hectares leased from Panama Ports Company, a subsidiary of Hutchinson Port Holdings. Construction will take two years.

Chemoil said the terminal will help it consolidate its position as the leading marine fuel supplier in Panama.