Titan is in “final talks” with China National Petroleum Corp (CNPC), China Petrochemical Corp and “three Shanghai government firms” to build the facility which could be located on Yangshan Island in Zhejiang province, according to the newspaper.

“Industry sources” said the facility would be used to store imported petrol, diesel and fuel oil and would have a total storage volume of 2 million to 3 million cubic metres over three phases, the report said. This facility is expected to require investments along the lines of US$240 million to US$362 million.

Titan, CNPC, China Petrochemical and the Shanghai government are expected to hold equal stakes.