Brooge Petroleum and Gas Investment Company (BPGIC) has signed a land lease agreement for the oil storage and services business to expand storage capacity and refinery operations in Fujairah Oil Industry Zone (FOIZ).

 

The official contract, which FOIZ and BPGIC signed in February, sees BPGIC UAE leasing an area of approximately 450,000 sq m in FOIZ. The signing ceremony took place at the Gulf Intelligence Middle East Summit at the IP Week Conference in London.

 

The land will be used for Phase Three expansion of BPGIC, which is developing terminals in Fujairah in stages. Construction on Phase Two is expected to be completed by Q3 of 2020. Once Phase Three is completed successfully as planned, the company will become the largest oil storage and services business in Fujairah, almost double that of its closest competitor, said a statement.

 

Phase Three should add storage and services capacity of 3.5 million cu m – 3.5 times the size of their projected operations post-Phase Two. Phase Three will be used by Brooge to further increase its capacity for crude oil storage and services and if needed, to host the remaining 90 percent of its refinery facilities.

 

“We are happy to be announcing the initial lease for significant land with Brooge Petroleum, which alone represents future capacity additions of over 3.5 times their facilities that are currently operating and under construction,” said Capt Salem Al Hammoudi, Director of FOIZ. 

 

“We host the Middle East’s largest commercial storage capacity for refined oil products, with the current storage capacity of 10 million cu m and we welcome the expansion of Brooge’s operations in Fujairah.”

 

Construction on the land will commence in 2020. Since the Phase Three facility agreement was signed in February this year, BPGIC has also had discussions with top global oil majors who have expressed interest in securing portions of the additional capacity. -TradeArabia News Service