South Africa’s Port of Saldanha Bay is being targeted as a potential new crude oil storage hub, as the global fuel glut grows. Oil has already begun to be shipped to Saldanha Bay for storage as the race to find storage for the over-supply of oil begins, according to S&P Global Platts.
With a capacity of nearly 60 million barrels of storage, and its strategic location between both Europe and Asia, Saldanha Bay deepwater port could turn into a popular port for crude storage in the uncertain economic climate.
Located 60 nautical miles northwest of Cape Town, Saldanha Bay has in the past predominately been used to export iron ore mined from sites within the Northern Cape. But in recent years it has constructed facilities for the oil and gas industry, which oil majors are now tapping into in their hunt for excess storage facilities.
The majority of crude oil to date has been arriving at Saldanha Bay from West Africa, a region that is already facing issues with storage for excess crude. It has been reported that in Nigeria there are currently unsold barrels of oil sitting idle.
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