Fujairah oil-storage terminal firmly on scheduleby CW Staff on Mar 22, 2012
Gulf Petrochem has confirmed that the first phase of its 120ha petroleum storage terminal project in Fujairah will meet its revised schedule to be completed by September.
The storage terminal project, delayed by five months, was originally due to be completed in a 17-month period ending in April.
In January, Petrochem signed a surprise investment agreement with the government of Fujairah, handing over a 12% stake in the terminal project in return for the receipt of for an undisclosed sum.
"The Fujairah terminal leverages the strategic location and infrastructure of the Fujairah port, and we expect our facility to significantly benefit our clients in the region," said Sanjeev Sisaudia, CEO of Gulf Petrochem.
With an original projected cost of $136.4m, the final capacity of the completed terminal will be 412,000m3. The terminal is to feature dock connected pipelines, capability of handling Class A, B and C products in all tanks, and a road tanker loading facility. The current capacity of the terminal stands at 350,000m3.
The announcement comes as Iran renewed threats to the Strait of Hormuz, which 35% of global maritime oil traffic passes through.
Fujairah Port, which offers seven berths for large tankers and 12 berths for small tankers, is highly viable as an alternative delivery route.
Other infrastructure being constructed as an alternative to the Strait includes a 370km oil pipeline between Abu Dhabi and Fujairah.
Also originally anticipated to begin exporting oil at an earlier date in January 2011, the $3.3bn pipeline has been substantially delayed as well.
“The pipeline is almost complete, so hopefully it will be operational, say, within six months, by May-June,” said UAE Oil Minister Mohamed al-Hamli in January.
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