(EnergyAsia, July 25 2014, Friday) — Japanese trading house Mitsubishi Corp said it is investing A$110 million in a new terminal in South Australia state to import, store and distribute diesel to serve the local markets hit by the closure of several refineries in Australia. (US$1=A$1.05).
Mitsubishi Corp said it will launch the final design and construction phase of the Port Bonython terminal this quarter, targeting the start-up of commercial operation in the second quarter of 2016.
The terminal comprises three 170,000-barrel tanks and pipelines to handle an annual shipping throughput of 900,000 kilolitres of diesel imported from Asia and the Middle East.
The company began planning for the project in January 2013 when wholly owned subsidiary Petro Diamond Australia Pty Ltd acquired Port Bonython Fuels Pty Ltd (PBF) and subsequently invited a local firm, Coogee Chemicals Pty Ltd, to participate as a shareholder and operating partner of the proposed terminal.
Drawing on its long experience and knowledge in the fuel supply, sales and distribution business, Mitsubishi Corp said it will use the new terminal to strengthen its petroleum trading functions and create greater synergies.
Developed in close collaboration with the South Australian government, the PBF terminal will “provide customers with a competitive and reliable supply of the highest quality diesel products,” said the Tokyo-based trading firm.
“Its establishment in close proximity to the main sources of demand in northeastern South Australia will provide improved capacity for responding to the customer needs as well as the increased supply options in the domestic diesel market and overall enhance energy security in Australia, playing a role in creating significant employment for the local community especially during the construction phase.”