Horizon Singapore Terminals Private Ltd (HSTPL) will build a 840,000 cubic metre liquid storage facility on Jurong Island in Singapore at a cost of S$343 million (Dh763.24 million).

HSBC is the lead arranger and sole underwriter for the S$240 million (Dh534.05 million) 12.5 year term loan for the project. The rest will be financed internally.

HSTPL is a joint venture by Horizon Terminals Ltd (a wholly owned subsidiary of Enoc), Martank BV (wholly owned by Vitol Holding), SK Energy Asia (wholly-owned by SK Corp), Independent Petro-leum Group, Kuwait and Boreh International FZE.

HSTPL has begun work on the terminal on 39 hectares at Singapore's Banyan Basin in Jurong Island. The construction of the terminal will be completed in 18 months and commissioned in the third quarter of 2006. The facility will be capable of handling Class 1, 2 and 3 petroleum products.

The project, which has the support of the Singapore government, is considered a milestone in the development of Banyan

Jurong Island as a key global terminal hub and in Singapore's determination to maintain its standing as one of the world's biggest oil products trading centres.

Emirates National Oil Co. (Enoc) group chief executive and board member and HSTPL chairman, Hussain Sultan said, "Enoc sees Singapore and the rest of South East Asia as an area of strategic importance and is very pleased to have embarked on this project along with its partners. This mandate enables Enoc and Horizon Terminals to tap into HSBC's vast experience and know-how in corporate and project finance as well as its extensive presence and knowledge in Asia."

HSBC Singapore's chief executive Paul Lawrence said, "We are excited to have this opportunity to bring our corporate and project finance experience and capabilities to bear on this initiative to meet the needs of Enoc and Horizon Terminals and help these valued clients realise their strategic business goals."