The project is expected to "contribute positively to CAO's bottom line from financial year 2013," Meng said.

Meng said that the company is looking at other investment opportunities in oil storage facilities, too.

CAO is the largest physical jet fuel trader in the Asia Pacific region and the key supplier of imported jet fuel to the Chinese mainland civil aviation industry. It was forced to undergo restructuring after suffer a loss of 550 million U.S. dollars in 2004 from oil derivatives trading in a scandal that made headlines.

The company has been working hard to enhance corporate governance and risk control in recent years and managed to pay up its debts four years ahead of its plan.

It is now trying to transform itself from a jet fuel supplier to a trader of jet fuel and other oils, with the aim of establishing itself as the leader in jet fuel trade in the Asia Pacific region and a major trader of other fuel oils by 2014.

The company announced on Friday that it has appointed Jean Teo Lang Lang for the newly created position of chief operating officer starting from Nov. 1 this year.