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Integrated physical bunker supplier Chemoil has announced that it has acquired a controlling interest in a storage terminal in the Philippines.

The ocean-front terminal located in Batangas, Philippines has an operational capacity of 34,000 cubic meters that could be used for the storage of petroleum products such as gasoline, diesel and fuel oil.

The investment is valued at over US$13 million and was financed through a combination of debt and equity.

The terminal is located on 23 hectares of freehold land thereby providing opportunity for further expansion. The company is currently exploring the possibility of expanding the terminal in the near future so that additional storage capacity may be used for marine fuels supply. In the interim, Chemoil will make further investments to the facilities to better meet the storage terminal’s operational requirements.

Commenting on the acquisition, Chemoil Chairman and CEO Clyde Michael Bandy said: “This acquisition is consistent with the company’s core strategy of growing our business along the lines of expanding geographic coverage of our operations, continuing to backward integrate our logistics chain, and offering new products whenever possible.

"We have a track-record of developing our business through identifying strong growth opportunities and so our investment in Batangas is a logical step. We have our Asia headquarters and a flourishing marine fuels business in Singapore and this newly acquired storage terminal will help us extend our presence into key regional markets in and around the Philippines.”

“Because of the terminal’s geographic proximity, Chemoil will also increase its ability to enter other regional ports including the buoyant Chinese fuel products market, hence further bolstering the company’s hub-and-spoke approach to expansion in Asia centered around its flagship Helios Terminal that commenced operations on Jurong Island, Singapore early this year. In addition, such infrastructure could potentially increase Chemoil’s flexibility for storing physical inventories, thus better positioning the business to take advantage of favorable trading dynamics.”