Fujairah is considering boosting crude and product storage capacity in the next three to four years to 17 million m3 from more than 10 million m3, “to cater to increasing demand” at its port.
“Our strategy is to stay ahead of the market,” said Captain Salem al-Hamoudi, director of Fujairah Oil Industry Zone.
Fujairah Oil Industry Zone is the authority that manages the land used for tanks and refining in the UAE emirate, which has a strategic location outside the Strait of Hormuz.
The Port of Fujairah currently has 16 oil and product storage terminals and is anticipating a pick-up in demand for crude infrastructure from Abu Dhabi National Oil Co and other existing customers, according to Martijn Heijboer, the port’s business development manager: “As early as this year we might need to make investment decisions to expand our infrastructure. We need to anticipate what is coming to make sure we stay ahead of the market.”
ADNOC is building underground storage caverns in Fujairah that will be able to hold 42 million barrels of crude, including its flagship Murban grade. Murban futures contract will begin trading on March 29 at ICE Futures Abu Dhabi and physical delivery of the grade will take place in Fujairah.
The underground storage project “is ongoing and will be connected to the port in the coming two years, that means there will be additional flows,” said Heijboer.
The Port of Fujairah may expand its berth and jetty infrastructure as part of growth plans, he added. Another project may be the addition of LPG loading arms and infrastructure to existing facilities due to an increase in LPG terminal inquiries for local supply and trade.
For more information visit fujairahport.ae