PV Oil, the trading arm of state-owned PetroVietnam, has started construction of its oil products terminal on Phu Quoc island, in the southern province of Kien Giang.

The terminal will be built in two stages and will have a total capacity of 120,000 cubic meters (cu m), PetroVietnam said. The first stage, with a capacity of 70,000 cu m, is scheduled to start operating in late 2017. The second stage, with a capacity of 50,000 cu m will be constructed later. Total construction cost is estimated at USD 64 million. The terminal would be able to receive vessels of up to 80,000 deadweight ton (dwt).

PV Oil will store imported oil products at the terminal for re-export and for product distribution in southwestern Vietnam. It also plans to lease out storage to local and foreign oil companies, PV Oil’s General Manager Doan Van Nhuom said in the statement.

PV Oil is the second largest oil company in Vietnam, after state-owned Petrolimex. It said earlier this month that it planned to increase its market share of oil products to 20% by 2020, from about 19%. It also hopes to hike oil product sales by 5-6% annually.