Oil storage firm Brooge plans major expansion of Fujairah capacity
Oil storage firm Brooge Holdings has signed a land lease agreement with the Fujairah Oil Industrial Zone (FOIZ) for an additional 450,000 sq m of space, as part of plans to expand its operations at the UAE’s East Coast hub.
Brooge Holdings, which is listed on the US Nasdaq, operates in Fujairah through its wholly-owned subsidiary Brooge Petroleum and Gas Investment Company (BPGIC).
The agreement covers a prime plot of land on which BPGIC plans to develop its phase 3 facility which could add storage and services capacity of up to three and half times the current size, state news agency WAM reported.
The expansion of storage and refining capacity will complement the facilities in its phase 1 and 2 developments. Initial studies indicate that the land could house up to approximately 3.5 million cubic metres of storage tanks and a refinery with a capacity of up to 180,000 barrels per day.
BPGIC said it is in discussions with potential partners for phase 3 including global oil majors who have expressed interest.
Nicolaas Paardenkooper, CEO of both Brooge Holdings and BPGIC, said: “We are thrilled to announce that we have secured a lease for this strategic and sizeable plot of land in Fujairah Oil Industry Zone, which can accommodate additional capacity of over 3.5 times our facilities currently operating and under construction.
“When the phase 3 expansion is completed, we expect to become the largest oil storage and service provider in the increasingly important FOIZ & Port of Fujairah.”
BPGIC said it will require additional financing to fund the development of phase 3 and plans to commence discussions with potential financiers in the near future.
Source: Arabian Business