Construction of the new facility, which will total approximately three million barrels in capacity, is expected to be completed within the next 18 to 24 months. Aegean Marine intends to lease a portion of the facility upon completion to a third party, which is expected to generate incremental income in addition to the Company’s core physical supply operations. Currently, Aegean Marine operates one in-land storage facility located in the U.K. In seeking to capitalize on the increasing worldwide demand for in-land storage, the Company also has an onshore storage facility currently under development in Jamaica and another in Morocco, where Aegean Marine maintains exclusive storage rights. In addition to its in-land storage facilities, the Company continues to operate four double-hull tankers that are used as floating storage. Including the new facilities in the UAE, Jamaica and Morocco, Aegean Marine’s total capacity for the worldwide storage of marine fuel is expected to exceed seven million barrels.
E. Nikolas Tavlarios, President, commented, “Our plan to build a new in-land storage facility is consistent with our plan to further grow sales volumes in the United Arab Emirates, the third largest bunkering market in the world, and strengthen our ability to provide superior customer service. As we strategically increase our dedicated in-land storage capacity, we plan to draw upon our revolving credit facilities and seek alternative debt financing to fund this important long-term project. By once again expanding Aegean Marine’s infrastructure for the global supply of marine fuel fArom procurement to delivery, we expect to strengthen our industry leadership and increase our future earnings potential.”