Sinopec Group, Asia's largest refiner, plans to build the largest oil terminal in Indonesia's Batam free trade zone. The project, which is powered by investment of $850m, is aimed at boosting petroleum trading in the country.
Sinpect will hold a 95% stake in the PT West Point Terminal project through its subsidiary Sinopec Kantons Holdings. The terminal will include storage for up to 16 million barrels of crude and refined fuels, according to filings with the Hong Kong exchange.
Sinopec has established its presence in Indonesia over the past 15 years, with a team of 50 people involved in trading refined product. According to local media reports, plans exist for a second phase to the project, with a refinery and pretrochemical facilities.
Liao Na of energy consultancy ICIS C1 Energy noted that the Batam facility will enjoy several attractive tax benefits, and allow the company to avoid transporting crude back to China for refining.