FTO.L Share News (FTO)

Independent oil and natural gas supply company Frontier Oil has today announced an agreement between its subsidiary South China Bluesky Aviation ("Bluesky") and China National Aviation Fuels. Under the terms of the agreement Bluesky will be responsible for the development, operation and management of the fuel storage, supply and logistic operations at fifteen new airports in central and southern China. The company will receive a management fee for overseeing the jet fuel operations at each airport and will be permitted to invest in the infrastructure. Two of the airports are currently under construction, with a further ten under planning in China´s 12th five year plan and another three envisaged under the 13th five year plan.According to data provided by the firm, China needs new airports to meet the projected rapid growth in air travel. China-wide passenger numbers are projected to increase from 300m in 2011 to 450m passengers by 2015 and 700m passengers in 2020. As well, the company has announced that its West Zhuhai oil products terminal will become a part of Petrochina's strategic oil products reserve facilities. The company expects this to "generate new revenue streams from the recently expanded facilities at West Zhuhai."As of 10:57AM shares of Frontier Oil are rising 10.5% to 10.5p. AB