According to Reuters, “Japanese trading house Mitsubishi Corp said it is entering Australia’s diesel market by building a $103 million gas oil import terminal to tap growing demand and as a closure of several refineries has squeezed domestic supply of the fuel.”
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Australia, which is now known for its key role in global oil trade and other energy resources, will welcome Asian oil trading giant Mitsubishi Corp to its growing list of oil terminals. The location is slated to include three 170,000-barrel-tanks situated in Port Bonython in South Australia.
Bloomberg BusinessWeek notes, “[The terminal’s] establishment in close proximity to the main sources of demand in northeastern South Australia will provide improved capacity for responding to the customer needs as well as the increased supply options in the domestic diesel market and overall enhance energy security in Australia, playing a role in creating significant employment for the local community in South Australia, especially during the construction phase.”
The move could increase Mitsubishi’s annual diesel exports to around 5.7 million barrels. In turn, the terminal will boost South Australia’s diesel market to around 12.6-15.7 million barrels, according to the latest projections for 2020.
The resource-rich nation has proved fruitful for Mitsubishi. The company recently shared in Australia’s agriculture industry with the purchase of Olam, a grain producer.
The Japanese company deals in many resource industries from textiles to food; however, its slice of the energy sector, which includes both oil and gas, represents some of its most lucrative ventures.
South Australia’s highly anticipated Mitsubishi terminal isn’t scheduled to begin operations until around June 2016 at the latest.
The Australian reports, “Tony Abbott said yesterday the FTA with Japan would boost Australian jobs. ‘Japan is Australia’s second biggest trading partner — with almost $70 billion in two-way trade every year,’ the Prime Minister said.” [/show_to]
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