Fujairah builds the third world biggest oil storage hub
The Strait of Hormuz is channelizing 35% of the global oil maritime traffic.
In a context of increasing tension with the neighboring Iran, Fujairah in the UAE is developing one of the biggest oil storage and export terminal in the world.
The storage capacity of the Fujairah terminal will be around 6.8 million cubic meters at the end of 2012 and should double by 2015 to reach 13.3 million cubic meters.
To build up this oil storage capacity a tens major companies are mobilizing capital expenditure in Fujairah.
Sinopec and Concorde Energy
Sinopec from China will take up about half the 1.1 million cubic metres of oil products storage that Singapore-based Concorde Energy plans to build in Fujairah.
That project is due to be completed by the third quarter of 2014.
Vitol Group and Royal Vopak NV
Vitol Group and Royal Vopak NV which have already 2.1 million cubic meters are planning to add 855,000 cubic meters by 2014.
Gulf Petroleum from Sharjah, UAE, is currently building 412,000 cubic meters storage capacity at $136 million capital expenditure to reach 1.2 million cubic meters at the end of 2012.
Gulf Petroleum already trades 18% of the Gulf market and ambitions to reach 25% with additional 408,000 cubic meters in 2014.
The Dubai-based and Dubai Government-owned company ENOC is building 240,000 cubic meters capacity to be available in 2013.
GPS Chemoil from Singapore is building capacity from its actual 86,000 cubic meters to 675,000 cubic meters capacity.
Prime Star Energy
Prime Star Energy, from the Emirates Trading Agency LLC group, has awarded a $100 million EPC contract to IL&FS Engineering & Construction Company to build an aggregate storage capacity of 600,000 cubic meters.
The storage tank terminal that will be built at an estimated cost of $165 million is expected to be completed in 2014.
Socar and Aurora
Socar Aurora, a joint venture between Socar, the State Oil Company of Azerbaijan Republic, Aurora Progress SA, and the Government of Fujairah is building up 645,000 cubic meters capacity in three phases, 144,000 cm in 2012, 232,000 cm in 2013 and 295,000 cm in 2014.
Fujairah Refinery and Emirates LNG Terminal
The Emirates LNG terminal should be built in two phases, each having a capacity of 600 million cf/d.
The first phase will include a floating storage and regasification terminal and will be completed in the second quarter of 2014.
Then an onshore LNG import terminal should be built in 2015.
With the Fujairah Refinery, the Emirates LNG terminal and this doubled oil storage capacity, Fujairah benefits from booming demand from the Middle East and Asia in combination with the threats on the Strait of Hormuz to callenge the world’s top two bunkering and oil trading hubs, Singapore and Rotterdam.