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Hong Kong-listed Titan Petrochemicals Group Ltd. has announced that one of its storage facilities in southern China has been approved as a fuel oil futures contracts delivery terminal for the Shanghai Futures Exchange (SHFE).

The Guangdong Nansha Petrochemical Terminal, which is 70% owned by Titan, is located at Xiao Hu Island in Nansha District of Guangzhou, capital city of Guangdong Province.

The facility is currently capable of storing 410,000 cubic metres of fuel oil after Phase I of the terminal construction project was completed. The second phase, which is scheduled to be finished towards the end of this year, will increase capacity by 670,000 cubic metres with Phase III expected to raise capacity to 1.8 million cubic metres on completion.

Of the total oil products storage capacity of the terminal, 50,000 cubic metres is said to have been approved as an SHFE fuel oil contracts delivery terminal, ranking it as the third most important SHFE terminal in terms of volume.

A large percentage of fuel oil volume currently takes place at PetroChina's 320,000 cubic metre storage facility in Zhanjiang city, also in Guangdong Province. SHFE also has three other fuel oil delivery terminals in operation. They are BP Guangzhou Oil Products Co. Ltd's 60,000 cubic metre facility in Nansha, Guangzhou; Guangdong Nanhua Oil Company Ltd's 30,000 cubic metre storage tanks in Guangzhou; and Chimbusco Zhuhai in Zhuhai city, with 20,000 cubic metre capacity.

The Nansha terminal is notably the fifth SHFE warehouse in Guangdong Province. Since its launch in 2004, SHFE has appointed all its delivery terminals in this Province. Guangdong is the largest oil distribution hub in the country and accounts for more than 50 percent of China's total imports and consumption.