Fujairah Oil Industrial Zone (FOIZ) and the oil storage and services business, Brooge Petroleum and Gas Investment Company (BPGIC), reaffirmed their partnership in a recently signed land lease agreement.
The official contract, which the two parties signed in February 2020, sees BPGIC UAE leasing an area of approximately 450 000 m2 in FOIZ. Phase III should add storage and services capacity of 3.5 million m3 – 3.5 times the size of their projected operations post-Phase II. Phase III will be used by Brooge to further increase its capacity for crude oil storage and services and if needed, to host the remaining 90% of its refinery facilities.
“We are happy to be announcing the initial lease for significant land with Brooge Petroleum, which alone represents future capacity additions of over 3.5 times their facilities that are currently operating and under construction,” said Salem Al Hammoudi, Director of FOIZ. “We host the Middle East’s largest commercial storage capacity for refined oil products, with the current storage capacity of 10 million m3 and we welcome the expansion of Brooge’s operations in Fujairah.”
Construction for the land will commence in 2020. Since the Phase III facility agreement was signed In Feb this year, BPGIC has also had discussions with top global oil majors who have expressed interest in securing portions of the additional capacity.
BPGIC is developing terminals in Fujairah in stages, with construction on Phase II expected to be completed by 3Q20. If Phase III is completed successfully as planned, the company will become the largest oil storage and services business in Fujairah, almost double that of its closest competitor.
Read the article online at: https://www.tanksterminals.com/storage-tanks/27022020/bpgic-and-fujairah-oil-industrial-zone-sign-land-lease-agreement/