ADNOC has signed an agreement with South Korea's SK Engineering and Construction to build the world's largest underground crude oil storage facility.
The underground facility will have the capacity to store 42 million barrels of crude oil in Fujairah in the UAE.
The EPC contract is for the construction of three underground storage caverns, each with a capacity of 14 million barrels, deep blow ground level. This contract is the largest for a single project award for underground crude oil storage in the world and is valued at AED 4.4 billion ($1.21 billion).
The ADNOC Fujairah Underground Storage will strengthen the UAE's position as a reliable supplier of crude oil as well as give ADNOC greater flexibility, allowing it to manage and optimise its delivery schedule and support its broader move into trading. It will also enhance its position as one of the key trading and supply partners in Fujairah's growth as a global oil and products storage and trading hub.
His Excellency Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO says: 'Construction of the world's largest single underground project award ever awarded for oil storage will enhance the UAE's energy security, in line with the wise guidance of the country's leadership. Importantly, developing this strategic oil storage mega facility in Fujairah will also support and further enable our broader trading ambitions, strengthening our ability to respond efficiently and competitively to the needs of our customers, while also providing ADNOC with greater flexibility to proactively respond to market needs and commercial opportunities.'
Works started in 2018 and the first phase of the facility, involving the construction of an access tunnel, has been completed.
When complete in 2022, the facility will be one of the largest facilities of its kind in the world and able to store three different types of crude oil, providing ADNOC with increased flexibility to export crude through Fujairah's Arabian Sea oil terminal.
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