Australia: New joint venture to develop major fuel storage facilities

Through this deal Qube Holdings expands into wholesale fuel distribution and TonenGeneral, Japan´s second largest refiner, will hope to increase their 12% share of the Australian fuel supply market, reports The Autralian.  

The joint venture has already announced their first moves together: a fuel storage facility in Port Kemble, New South Wales, and the acquisition of the fuel marketing and distribution company Petro National in Australia.

"This transaction provides Qube with further diversification within the import-export supply chain and an opportunity to enter an attractive market that is significantly underserviced," Qube managing director Maurice James said.

Port Kemble´s planned fuel storage facility has already received development and planning approval. It will have a potential capacity of 230 million litres and is expected to be operational by the second half of 2017.

“The chronic shortage of fuel storage capacity in Australia presents a compelling investment opportunity, the appeal of which has only increased as local oil refineries close and Australia moves to a substantial reliance on imported fuel,” said James.