Sinopec Kantons acquires Five Crude Oil Terminal Operators from parent company

Sinopec Kantons Holdings Ltd. and its subsidiaries announced the acquisition of equity interest in Five Crude Oil Teminal Operators from its parent company, China Petroleum & Chemical Corp. (Sinopec Corp.). The acquisition makes Sinopec Kantons a key player in China, providing crude oil terminal and other logistics services. The acquisition will also increase its capacity by 165% to approximately 225 million tons, which will make the company the largest crude oil terminal provider in China and one of Asia’s largest. The acquisition will also enhance its market position and add to its experience and expertise in the operation of crude oil terminals. “Driven by China’s growing demand for crude oil and its limited domestic supply and insufficient strategic oil reserves, the demand for crude oil terminal capacity and related logistics services is expected to grow significantly in the coming years,” said Ye Zhi Jun, managing director of Kantons. He added, “Sufficient crude oil storage, facilities and capacity are crucial for China’s economic development particularly in times of high crude oil price volatility. Therefore, this acquisition is aimed at capturing the business opportunity derived from the strategic demand.” (December 19, 2011)