SINGAPORE (Indonesia Today) – China Aviation Oil (Singapore) Corporation Limited, the largest physical jet fuel trader in the region, has aborted a plan to enter into a joint venture with Centralized Terminals Sdn Bhd for the construction of oil storage terminal at the Port of Tanjung Langsat, Johor, Malaysia.
CAO informed SGX today that the fulfillment of certain key conditions precedent of the agreement would require a much longer period of time than envisaged. As a result, CAO and CTSB have agreed to let the agreement lapse on August 20, 2012 as it is no longer commercially feasible to continue the project.
At the moment, CAO operates storages in Singapore, China, and South Korea. The oil storage in Korea is expected to be operational in January 2013.