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A new 50-50 joint venture between Japan's TonenGeneral Sekiyu K.K. (TonenGeneral) and Australia-based Qube Holdings Ltd (Qube) aims to develop a fuel storage facility in Port Kembla, New South Wales.

According to TonenGeneral, the facility would have a potential capacity of 230,000 kilolitres. Construction is expected to be completed in late 2017.

The joint venture also plans to develop a fuel marketing and distribution business to supply fuel products from the new import terminal. As an initial step, the joint venture has agreed to acquire the full ownership of Petro National Pty Ltd in Australia.

The total capital expenditure for the fuel storage facility and the Petro National Pty Ltd acquisition is expected to be around A$150 million (approximately US$110 million), with the majority of the funding required in 2016 and 2017, TonenGeneral said.

Port Kembla is one of three key bunker ports in New South Wales. It is a major location for the export of coal mined in the southern and western regions of the state and the import of steel products. In recent years, the port has diversified its trade base to include general and break bulk cargoes, containers and motor vehicle imports. It is also the principal grain export port for producers in southern and south-western New South Wales.

Qube is Australia's largest integrated provider of import and export logistics services. It has been listed on the Australian Securities Exchange (ASX) Standard & Poor's (S&P) 200 index since 2007.

TonenGeneral Group, comprising TonenGeneral Sekiyu K.K. and its related companies and subsidiaries, is primarily engaged in the sale of petroleum and petrochemical products. TonenGeneral Sekiyu K.K. is listed on the first section of the Tokyo Stock Exchange (TSE).

Commenting on the Qube joint venture, TonenGeneral said: "Australia is a major export market for TonenGeneral's refined products as import demand has been expanding for the past several years. This development will enable TonenGeneral to extend its distribution of products into Australia as well as enhance Australia's petroleum products supply chain together with Qube.

"TonenGeneral is seeking business opportunities in growing overseas markets in order to increase value for shareholders. The initiative... is aligned with the achievement of this objective."