Exclusive-Mitsubishi seeks to sell California product terminal and trade weapon

By Shariq Khan and Laura Sanicola

(Reuters) – Mitsubishi Corp. wants to sell a fuel terminal that provides transportation fuel that meets stringent emissions requirements in California, two sources familiar with the matter told Reuters on Wednesday.

The company is working with Ernst and Young’s energy consulting team to market the 600,000-barrel Petro-Diamond terminal in Long Beach, California, and the corresponding fuel trading division, sources said.

Mitsubishi is looking for a joint venture partner or full sale for Petro-Diamond, sources added.

The terminal is the only asset of Mitsubishi-owned refined products in the US, the largest trading house in Japan in terms of sales.

Mitsubishi had a large trading operation in Singapore, also known as Petro-Diamond (PDS). The company started down in 2020 when a PDS trader lost $ 320 million in unauthorized derivative transactions.

Mitsubishi may cancel the sale of the US terminal if it does not yet find a suitable buyer, they said. Could not set Petro-Diamond rating target.

EY and Mitsubishi did not return a request for comment.

PetroDiamond was founded in 1983 and markets and distributes specific transportation fuels in Southern California, including CARB gasoline, low-sulfur diesel, ethanol, and marine fuels.

Last year, an executive order called for all new trucks for cars and passengers sold in California by 2035 to be zero-emission vehicles, and for the state to reduce the dirtiest forms of oil extraction.

Royal Dutch Shell (LON 🙂 Plc is looking for a buyer for Air, a joint venture that produces oil and gas in California. Exxon Mobil Corp (NYSE :), Reuters reported in July.