Trading firms Trafigura and Gunvor have taken over the fuel oil storage leases previously controlled by local firm Hin Leong at Singapore’s Universal Terminal, reports S&P Global Platts.
The reassignment of the capacity comes after Hin Leong applied for court protection earlier this year.
Sources told S&P Global Platts that Hin Leong controlled about 240,000 cu m of capacity at Universal Terminal for fuel oil and now Trafigura has taken 140,000 cu m of the capacity, while the remaining 100,000 cu m was taken by Gunvor.
As a result, Trafigura has increased its storage capacity at Universal Terminal to a total 220,000 cu m and Gunvor to 240,000 cm in the third quarter.
Hin Leong sought court protection in April due to severe financial difficulties and the company’s parent group Xihe Holdings, owned by Hin Leong founder Lim Oon Kuin and his son, was also placed under interim judicial managers at the request of major creditor OCBC this month.
