Saturday 6 June 2020

Fujairah draws interest of key oil industry players

FUJAIRAH, June 5, 2019

The Port of Fujairah and the adjacent Fujairah Oil Industry Zone (FOIZ)  continue to attract further business and investment, with local firm Brooge Petroleum and Gas Investment Company (BPGIC) and Dubai-based Sahara Energy Resources plannning to build a new 250,000 barrel per day refinery to produce bunker fuel. a report revealed.
The refinery will be one of the first of its kind in the Middle East and North Africa to comply with new rules of the International Maritime Organisation, being introduced in 2020 on capping the percentage of sulphur in fuel at 0.5 per cent, said a report in WAM.
BPGIC, founded in Fujairah in 2013, currently has around 400,000 cubic metres, cu.m., of storage capacity in Fujairah’s FOIZ, with a further 600,000 cu.m due to be completed before the end of this year.
Furthermore, 18 oil companies are already established in the Zone, with a total storage capacity of around 10 million cubic metres, the report said.
Fujairah is also now emerging as a centre of increasing importance for international oil trading, with the announcement earlier this month that the Aramco Trading Company, a subsidiary of Saudi Aramco, has just inaugurated its second overseas office in the Zone. The first was opened in Singapore.
The new facility, Aramco Trading Fujairah (ATF), will handle all Aramco Trading gasoline and fuel oil storage and blending activities.
"Aramco Trading has experienced significant growth in recent years. We started in 2012 with 600,000 to 700,000 b/d and now we’re operating at more than 4 million b/d – and as the downstream business grows to the level that we want to reach 8-10 million b/d – Aramco Trading will grow together with that business. At Fujairah, we have a growing business that started with 100,000 b/d and now we have 350,000 b/d between gasoline and fuel oil. So, for this reason, Fujairah would be the optimum location that is close to our assets close to the free zone," said the report citing Ibrahim Al-Buainain, president and CEO, Aramco Trading Co..


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