Dec 1 (Reuters) – Mitsubishi Corp (8058.T) is trying to promote a gas terminal that gives transportation fuels which meet California’s stringent emissions necessities, two sources aware of the matter instructed Reuters on Wednesday.
The firm is working with Ernst and Young’s power advisory group to market its 600,000-barrel Petro-Diamond terminal in Long Beach, California, and its corresponding gas buying and selling division, the sources mentioned.
Mitsubishi is searching for both a three way partnership accomplice for Petro-Diamond or an outright sale, the sources added.
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The terminal is the one U.S. refined merchandise asset owned by Mitsubishi, Japan’s greatest buying and selling home by gross sales.
Mitsubishi beforehand had a large buying and selling operation in Singapore, additionally named Petro-Diamond (PDS). The firm started winding down in 2020 after it mentioned a PDS dealer had misplaced $320 million in unauthorized transactions in crude oil derivatives.
Mitsubishi may nonetheless scrap the sale of the U.S. terminal if it fails to discover a appropriate purchaser, they mentioned. A goal valuation for Petro-Diamond couldn’t be decided.
EY and Mitsubishi didn’t return requests for remark.
PetroDiamond was shaped in 1983 and markets and distributes on-spec transportation fuels in Southern California together with CARB gasoline, low sulfur diesel, ethanol and marine fuels.
Last yr, an government order required that by 2035 all new vehicles and passenger vans bought in California be zero-emission automobiles, and that the state scale back the dirtiest types of oil extraction.
Royal Dutch Shell Plc (RDSa.L) has been on the lookout for a purchaser for Aera, its California-based oil and gas-producing three way partnership with Exxon Mobil Corp (XOM.N), Reuters reported in July.
Register now for FREE limitless entry to reuters.comRegisterReporting by Laura Sanicola and Shariq Khan; Editing by Richard Chang
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