(IEG corrects to state it has three traders, not one, in
* Plans to import crude oil, light oil components from west
* Expects to sell into China
* Eyes growing middle distillates exports from China
By Florence Tan and Jessica Jaganathan
SINGAPORE, Feb 15 Singapore-based trading
start-up International Energy Group (IEG) this year plans to
expand its portfolio to crude oil from products such as gasoline
and gasoil, looking to tap growing Chinese demand.
World No.2 oil consumer China posted record crude import
growth in 2016 on demand from independent refiners, with
shipments expected to increase again this year.
"We will probably look at importing crude and some light
components (such as ethylene) from the West, particularly the
U.S.," Artun Gursel, the company's book leader and trading
manager, told Reuters on Tuesday. He is one of three traders at
IEG, a subsidiary of Singapore-listed New Silkroutes Group
(NSG), started trading oil products in 2015 by leasing
storage in South Korea and selling fuel to Southeast Asian
countries, said Gursel, declining to give trade volumes.
"There's growth in products trading in middle distillates
because of exports from China," Gursel added, as well as noting
the company would look to boosting trade with Southeast Asia.
IEG is also working with an asset management unit under
parent company NSG to look at energy infrastructure investment
that could support its oil trading.
"Oil markets are so transparent that business models that
you develop tend to last no more than two years. So you have to
control businesses under your own name through infrastructure
investments," said Gursel.
"This environment of low oil prices and logistics costs will
not stay," he said, adding that this is a good opportunity to
acquire assets such as oil tankers or investing in distribution
networks or terminals.
Earlier this month, NSG announced that it had bought an
80-percent stake in New York-based CG Capital Markets Holdings,
which will be renamed New Silkroute Capital.
The acquisition provides NSG access to western funds and a
financial platform that allows it to accept the currencies of
trading partners, such as the Chinese yuan, said IEG executive
director Nelson Goh.
(Reporting by Florence Tan and Jessica Jaganathan; Editing by