Laura Sanicola and Shariq Khan

(Reuters] – Mitsubishi Corp plans to sell a fuel terminal which supplies transportation fuels meeting California’s rigorous emissions regulations, two sources who are familiar with it told Reuters Wednesday.

According to sources, Ernst and Young’s energy advisory team is helping the company market its 600,000.barrel Petro-Diamond terminal at Long Beach (California) and its fuel trading division.

The sources said that Mitsubishi was looking for a joint venture partner or an outright purchase.

Mitsubishi Japan, Japan’s leading trading house (in terms of total sales), owns the U.S. terminal.

Previously, Mitsubishi also had a substantial trading operations in Singapore. This was called Petro-Diamond (PDS). Following the announcement that a PDS trader had suffered $320 million losses in illegal derivatives transactions, the company decided to close down.

If it doesn’t find a buyer for the U.S. terminal, Mitsubishi might still opt to sell the unit. It was not possible to determine a target value for Petro-Diamond.

EY, Mitsubishi and others did not respond to our requests.

PetroDiamond was established in 1983. It markets and distributes on-spec fuels throughout Southern California.

An executive order was issued last year requiring that all passenger and new car models sold in California by 2035 be emission-free and that oil extraction from California is reduced to a minimum level.

Royal Dutch Shell Plc (LON. ) Plc was looking for a buyer to buy Aera, its California-based oil/gas-producing joint venture. Exxon Mobil Corp (NYSE :), Reuters reported on July.