Fujairah, the head of the Fujairah oil terminal, told Reuters that his company was investing $ 45 million to modernize the infrastructure of its storage facilities in the race for higher demand for oil circulation and storage in Fujairah, the oil hub in the United Arab Emirates. .

The expansion of the Fujairah project, funded by the new $ 280 million loan facility, will connect its terminal to the Fujairah Port Fujairah port loading facility and the Abu Dhabi Crude Oil Pipelines Company (ADCOP) pipeline, Steve Pickerton said. Head of Proster Capital and Fujairah Oil Terminal.)

“This is a major rule change because it gives customers access to carry crude oil via VLCC and gives our customers direct access to the file.

He said the project is expected to be completed by the end of next year.

Abu Dhabi introduced Murban futures contracts in March, which are contracts for delivery in Fujairah, offering competitive benchmark prices and allowing traders to hedge on the Middle East crude and refining margins.

The Abu Dhabi National Oil Corporation (ADNOC), the United Arab Emirates’ national oil company, plans to increase its production capacity from four million barrels per day by 2030 to five million barrels by 2030.

“Although this port is historically one of the largest bunker ports in the world, I think we will see the crude oil market dominate,” Pickerton said.

Pickerton said there was “real potential” for Proster to increase its crude oil storage capacity in Fujairah through the GTI Fujairah terminal, which is located next to the Fujairah oil terminal, as trade and storage opportunities are possible through futures deals for Murban crude.

About 40% of the Fujairah oil terminal is owned by Proster Capital, while the rest is owned by Hong Kong-listed Sinopec Cantons (50%) and Fujairah State (10%).

“GTI has stored land on the back of the existing terminal at Fujairah and can create an additional storage capacity of 500,000 cubic meters on that land and can connect to the VLCC connection where we work as part of the Fujairah oil terminal project,” Pickerton said.

The Fujairah oil terminal will account for 29% of Fujairah ports by 2020, and 12% of Fujairah’s storage market, according to Proster’s website.

(Reuters)