Noble sees India as big import/export platform.

SINGAPORE  Noble Group will start operating a new iron ore terminal in India that can load up to 10 million tons a year within the next 18 to 24 months, its chief executive said on Tuesday.

The Hong Kong-based commodity and energy trading firm has also leased storage space in Western India for distillates and gasoline some eight months ago, to boost its presence in the country's energy and commodities sector.

"We are a big exporter of coal to India. And we are big importer of iron ore. So India is a big import/export platform for us," Ricardo Leiman said at the Reuters Global Energy Summit in Singapore.

"Energy and agriculture will continue to be the largest revenue generator moving forward," added Leiman, formerly Noble's chief operating officer, who took over from Richard Elman as CEO at the start of 2010.

"We have made a lot of investment in these areas, in which we also have the most assets such as liquid storages and coal."

Asked how the current weak gasoline demand has affected the Singapore-listed company, which set up a desk in the city-state to trade the auto fuel last year, Leiman said:

"Even though demand is going down, it doesn't mean we cannot be profitable. Gasoline is a global business.

"Gasoline capacity in the East is displacing the capacity in the West, and we have moved gasoline from the East to the West this year."  

Noble is building a 520,000 cubic-meter export/import terminal in Rotterdam, which will export gasoline and import fuels including biodiesel, ethanol and clean fuels.

The first phase of the Rotterdam terminal will begin in 2011, with the second phase to be completed in 2012.

Noble, which started a crude oil business recently in Canada, the United States and Europe, is extending its coverage beyond petroleum to include petrochemicals.

"We seek opportunities for polymer (plastics) and petrochemicals, which are quite profitable," said Leiman.

Noble already has a petrochemical business distribution network in India and has also launched a naphtha trading desk in Singapore with two traders.

Completing its oil products trading chain, Noble has also leased the converted tanker "Hercules" from Malaysia's Arus Dermaga, to store fuel oil, Leiman said.

"Noble sees a lot of growth across the globe and we continue to invest in liquid storages in Asia," he added.

Source : Reuters