ABU DHABI (Reuters) - Brooge Petroleum and Gas Investment Company (BPGIC) plans to boost storage capacity for crude and oil products in the Fujairah oil hub in the United Arab Emirates, the UAE-based company said on Monday.
BPGIC plans to start building the second phase of its storage terminal in the next few months adding 600,000 cubic meters of capacity for crude oil across eight tanks, the company said in a statement.
The expansion is due to be completed by the fourth quarter of 2019.
The firm, one of the largest holders of storage assets in Fujairah, was set up in 2013. The first phase of 400,000 cubic meters of storage across 14 tanks for middle distillates and fuel oil was completed in October and began operations in January.
“Fujairah is in a prime location outside of the Strait of Hormuz and well positioned in the middle of the global trading routes,” General Manager Nico Paardenkooper said.
“We do strongly believe in establishing more independent crude oil storage capacity with crude blending options as this is something that is becoming more important globally.”
Located on the east coast of the UAE at the entrance to the Strait of Hormuz, Fujairah is one of two major ports in the region along with Oman’s Sohar and is a busy refueling point for tankers taking crude on long voyages out of the Gulf.
The emirate is keen to boost its status as a global trading hub by increasing its port storage capacity from 10 million cubic meters to 14 million cubic meters by 2020. Traditionally, it focused on fuel to power tankers and refined oil products.
Reporting by Rania El Gamal; Editing by Edmund Blair