Gulf Petrochem FZC, an oil-products trader based in the United Arab Emirates, plans to triple the size of a $135 million fuel-storage facility inaugurated today at the port of Fujairah, outside the Strait of Hormuz.
The company plans to expand the facility, which can store 412,000 cubic meters of fuel oil and gasoil, to hold as much as 1.2 million cubic meters by the end of 2015, Chief Executive Officer Sanjeev Sisaudia told reporters at the opening ceremony.
Fuel-storage operators lease out space to oil companies or traders or use tanks to store products they buy and sell themselves. Sisaudia said Gulf Petrochem has leased most of its storage and will keep about 10 percent for its own trading.
Fujairah, one of the U.A.E.’s seven sheikhdoms, lies outside the Persian Gulf and south of Hormuz, a chokepoint for regional tanker traffic. Fujairah’s location on the Gulf of Oman has attracted international traders and tank operators such as Vitol Group and Royal Vopak NV, which have storage sites there.
Gulf Petrochem received $80 million in financing from five banks for the project, Group Director Prerit Goel said in an interview. Abu Dhabi Islamic Bank PJSC led the group arranging the seven-year syndicated loan, he said. Gulf Petrochem is privately held, with headquarters in the U.A.E. emirate of Sharjah.
GPS Chemoil, a fuel-storage company with a 95,000 cubic-meter tank farm in Fujairah, plans to open an additional 600,000 cubic meters of capacity by early April, its General Manager Tarun Arora said in an interview today. The company is owned 60 percent by GPS, a privately held business based in the U.A.E., and 40 percent by Singapore-based Chemoil Energy Ltd., in which Glencore International AG has an 89 percent stake.