February 21, 2022 [S&PGlobal] – The Port of Fujairah on the UAE’s east coast may soon introduce LNG bunkering operations as the world’s third largest bunkering hub seeks to expand its services, the director of the Fujairah Oil Industry Zone said Feb. 24.
“A dry bulk export facility to ship from Fujairah’s Dibba is set to open later in 2022, providing a boost to bunkering activities, while LNG bunkering may soon be introduced,” Captain Salem al-Hamoudi told a virtual workshop organized by Dubai-based Gulf Intelligence. Fujairah Oil Industry Zone, or FOIZ, is the authority managing the land used for storage tanks and refining in the eastern UAE emirate.
Hamoudi didn’t provide further details on the LNG bunkering project.
Abu Dhabi National Oil Co.’s shipping arm is studying whether to back an LNG bunkering operation in the UAE to serve as a fueling station for its new LNG-fueled ships on order.
Fujairah and Jebel Ali in Dubai are being considered for the LNG bunkering operation, Samuel Lazar, manager, technical (gas), ship management, at ADNOC Logistics & Services, told S&P Global Platts Dec. 15. ADNOC L&S’s fleet currently includes dual fuel capacity, while the new orders will use only LNG, he said. But there are no options in the region for LNG bunkering.
ADNOC for the last two years has been looking for a solution to serve the new LNG-fueled vessels, including VLGCs and VLCCs, Lazar told the Seatrade Maritime Middle East conference at Expo 2020 in Dubai.
LNG export terminal
ADNOC said earlier this year it was expanding its shipping fleet to support its newly established trading business and plans to boost oil production capacity by 25% to 5 million b/d by 2030. It announced in February six new vessels, the first crude carriers to join the ADNOC L&S fleet, which can carry a total of 12 million barrels. It also said it ordered five newbuild and one recent second-hand dual fuel VLGC for AW Shipping, its joint venture with Wanhua Chemical Group and purchased four bulk carriers.
ADNOC L&G grew its fleet with 16 deep-sea vessels in 2020.
ADNOC is mulling building a new LNG facility in the UAE to meet growing global demand for the commodity amid plans to achieve gas self-sufficiency in OPEC’s third biggest producer, two industry sources told Platts on Feb. 21.
ADNOC issued a tender for a front-end engineering design, or FEED, contract on Feb. 20 for building an LNG facility with two trains that are expected to have a combined capacity of around 10 million mt/year, one source told Platts.
The potential location of the LNG facility may be Fujairah, the source added.
An ADNOC spokesperson confirmed that the tender for a FEED contract for an LNG facility had been issued.
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