SINGAPORE, April 2 (UPI) -- China Aviation Oil (Singapore) Corp. says its 343.4 million-gallon oil storage terminal in South Korea has begun commercial operation.
The $500 million facility was developed by Oilhub Korea Yeosu Co. in Yeosu, South Korea, the company said.
CAO, a major jet fuel trader in the Asia-Pacific, owns 26 percent of OKYC. The Korean National Oil Corp. has a 29 percent stake in the joint venture.
China's state-owned China National Aviation Fuel Group Corp. is the majority parent of CAO, which has become a key supplier of imported jet fuel to the Chinese civil aviation industry.
"As [South] Korea is CAO's main source of jet fuel supply and located geographically close to its key customers in China, securing oil storage at OKYC's terminal has significantly strengthened CAO's ability to ensure certainty of jet fuel supply to China," Chief Executive Officer Meng Fanqiu said. He said the company has signed an eight-year storage lease with OKYC for middle distillates.