September 13, 2021 [Argus] – UAE storage firm BPGIC has commissioned its long-delayed phase-two expansion of its crude and products storage terminal in Fujairah.
The launch boosted BPGIC storage capacity by around 600,000m³ to 1mn m³ (6.3mn bl).
UAE storage firm BPGIC has commissioned its long-delayed phase-two expansion of its crude and products storage terminal in Fujairah.
The launch boosted BPGIC storage capacity by around 600,000m³ to 1mn m³ (6.3mn bl).
“Phase-two facility, which now includes capacity to store crude oil along with fuel oil, is officially open and revenue-generating, having received its first cargo”, said chief executive Nicolaas Paardenkooper. “Oil storage in the port of Fujairah is in high demand, which has enabled us to fully contract the entire capacity with multi-year take-or-pay contracts.”
Phase-two construction was completed in July, but to begin operations the company first had to complete facility testing and secure full regulatory approval.
The launch of the second phase has been delayed by more than a year. It was initially due to be completed in the second quarter last year, but was delayed to the fourth quarter of 2020, then to early 2021 and finally to the second quarter of this year.
The third and final phase of the expansion project will add another 2.5mn m³ of storage capacity. The construction works could begin this year and the completion is expected in 2023.
As part of the third expansion phase BPGIC will also build a 180,000 b/d conventional refinery and a 25,000 b/d modular refinery.
The company has delayed the launch of the first, 25,000 b/d, phase of its 180,000 b/d marine-fuel oriented refinery into the first half of 2022, from the second half of this year.
BPGIC will operate the smaller, 25,000 b/d refinery on behalf of an unnamed trading firm. The refinery will also mainly produce very low-sulphur fuel oil (VLSFO) compliant with International Maritime Organisation (IMO) sulphur limits.
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