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Japan's Itochu Enex Co. Ltd. is reported to have sealed a deal to lease 150,000 cubic metres of storage at Chemoil's Helios Terminal on Jurong Island, Singapore, according to industry sources.

News of the deal follows reports last month that the Japanese trading house was planning to lease around 120,000 metric tonnes of oil storage in Singapore in order to increase marine fuel sales at the world's largest bunker port.

Itochu, which holds a 22.03 percent stake in Chemoil, has recently become more active in the Asian fuel oil market. In April the company purchased an 80,000-tonne cracked 380-centistoke fuel oil cargo from Saudi Arabian Oil Co. (Saudi Aramco) at a $6 per tonne discount to Singapore mean, free-on-board Rabigh, according to market sources.

The deal to lease storage space at Jurong Island will theoretically enable Itochu to store the 380-cst parcel there following its arrival in May.

Itochu could also use the storage for its term supply of low-sulfur waxy residue from Indonesia as demand in Japan declines. The company receives two 200,000-barrel LSWR cargoes from Pertamina each month.

As a trader of marine fuels and lubricants in major ports around the world, Itochu currently sells around 3 million tonnes per year.

Domestically the company acts as a physical supplier and trader. Itochu says it has "a total amount of 24,000 kilo-liters in tank leasing, establishing a self-supplying system in key refueling ports," according to its website.

As well as acting as a bunker trader in overseas ports, the company also provides a risk management service to clients, offering advice regarding the purchase of fuel.

With regards to the supply of lubricants the company says it delivers to around 160 vessels at major ports around the world - mainly to Japanese ship owners.