Guangdong is set to see a major expansion in oil and petrochemical storage facilities this year and next, driven largely by demand in the power generation and industrial sectors.
Wu Xuhui, director of storage and transshipment facilities operator Guangdong Petro-Chemicals, said the company planned to invest 20 million yuan to 30 million yuan to expand its liquid petrochemical storage facilities by 5,000 cubic metres from an existing 94,750 cubic metres.
The company has 25 oil products storage tanks with total capacity of 231,000 cubic metres. It is one of the largest operators of such facilities in the province.
Guangdong Petro-Chemicals is to be acquired by main board-listed paper packaging material maker Wisdom Venture Holdings for HK$1.04 billion.
Wisdom Venture is expected to exercise an option to dispose of its packaging business.
Mr Wu said Guangdong Petro-Chemicals had reserved land for the expansion, adding it could be completed three to four months after a final decision on the plan was made by the company, pending negotiations with customers.
The company's expansion is part of the overall expansion of the sector. Britain-based energy giant BP has formed a US$86 million joint venture with Guangzhou Development Industry Holding.
