Hin Leong to spend $3b on Asia expansion

Singapore oil trader and shipper Hin Leong plans to spend up to US$3 billion to build oil terminals and distribution facilities in emerging Asian markets, including fresh investments in Myanmar and Indonesia, to meet rising oil demand from the region.

"East Timor, China, Indonesia and Myanmar -- they all need oil for their development," Chairman O.K. Lim who founded Hin Leong Group, said as reported by multiple local media. "We are already a fuel supplier and we want to provide more services."

The family company owns one of the largest commercial oil storage complexes in Asia, Singapore's Universal Terminal, with its trading operations rivalling majors like BP and Shell in its home waters.

It also has a fleet of more than 100 tankers, and it plans to raise trading revenue by 5-10 percent in the year ending Oct. 31 from about $12 billion in the last financial year.

As a long-time supplier to emerging Asian economies now opening up further to foreign investors, Hin Leong has watched oil demand in these markets grow from home use met by fuels in retail quantities, to industrial use met with bulk shipments in wholesale barrels and tankers.

Hin Leong is planning to build oil storage and distribution units either in west Indonesia or in Papua province in the east to meet rising domestic demand.

In East Timor, phased investment would begin with 100,000 cubic metres of storage for four products - kerosene, gasoline, jet fuel and asphalt.

Hin Leong is still awaiting Beijing's approval to build a $1.7 billion storage terminal at Meizhou Bay in southern province of Fujian that could eventually hold up to 41 million barrels of crude oil and products. (*)