Titan plans to start bunker fuel business in China

Hongkong-based Titan Petrochemicals Group Ltd. (Petrotitan) plans to expand its bunker fuel business in Asia by entering the Chinese market, said Kin Wai Lam, head of corporate communications. Petrotitan’s oil storage facilities are located in Shanghai, Quanzhou in Fujian province and Nansha in Guangdong province. Lam declined to say which ports are under consideration or when the company plans to start operations. “One possible way is to have a strategic alliance,” but it might not be with [any of the] the five companies holding bunkering licenses in China, Lam said. The government awarded five bunkering licenses, all to Chinese companies in 2006, so foreign firms such as Royal Dutch Shell PLC and BP PLC (BP) had to form partnerships with them to be able to supply bunker fuel in China. Petrotitan is keen to expand its bunker fuel business despite plans to sell its oil trading business by the end of this year. Lam said the company is still in discussion with potential buyers. (July 24, 2008)