---

Hin Leong Trading is planning to build a 300,000-500,000 barrel-per-day (bpd) refinery in Singapore, according to industy sources.

The Singapore-based oil trading firm is reported to have already submitted a proposal to the Singapore government to construct the Jurong Island plant, which would cost around US$6-US$8 billion and take up to three and a half years to complete.

According to sources, Hin Leong intends to build the refinery next to its Universal Terminal - one of the largest independent petroleum products storage terminals in the Asia Pacific region. The terminal has a 2.3 million cubic metre (cbm) storage capacity and would provide more operational efficiency by offering immediately available tankage both for crude oil feedstock and refined products. It has 73 storage tanks with capacities ranging from 2,000 cbm to 100,000 cbm and provides a total of 12 berths, including two that can accommodate very large crude carriers (VLCCs)

Hin Leong is said to be planning to use the refinery to produce green fuels such as ultra-low sulphur gasoline, diesel and naphtha in the mould of Reliance's plants in India.

Earlier this year, the Singapore government unveiled a 10-year plan to make Jurong Island Asia's leading chemicals hub. It is reported to have commented that there is not a specific objective to attract greenfield refinery investments, but would evaluate all projects based on the value they bring.

Singapore currently has three refineries - ExxonMobil's 605,000 bpd, Shell's 500,000 bpd and Singapore Refining Co's 290,000 bpd, which is jointly-owned by PetroChina and Chevron Corp.

According to Singapore's Business Times, one of China's four national oil firms - PetroChina , Sinopec Corp , CNOOC or Sinochem Corp - could partner Hin Leong in the refinery project in addition to a European partner.

PetroChina already has a 35 percent stake in Universal Terminal and owns almost half of the 295,000-bpd Singapore Refining Company Private Limited. A new refinery partnership with Hin Leong would enable PetroChina - Asia's largest oil and gas firm - to close the gap with the city-state's two largest refiners ExxonMobil and Shell.