Dubai Multi Commodities Centre (DMCC), Star Energy Resources and Tropicana Trading DMCC have signed an agreement to build an oil products storage facility at Techno Park in Dubai.
The proposed oil storage terminal will have an initial capacity of 570,000 m³ and involve an estimated investment cost of around $200 million (127 million).
The facility will store a wide range of oil products, including petroleum, gasoil/diesel, jet fuel and fuel oil, as well as offering services such as blending.
The storage infrastructure facility is expected to service the Al Maktoum International Airport via a pipeline directly linking the two facilities. In addition, two new oil tanker berths will be built at the western breakwater of Jebel Ali port for easy supplier access, with the capacity to accommodate tankers of up to 80,000 tonnes.
The final investment decision for the project will be subject to positive results from a front end engineering and design study, which will be completed within six months.
'Ensuring adequate oil storage facilities is crucial for enhancing Dubai's role as the Middle East's leading oil products trading hub and for accommodating the rapid growth of Dubai's own oil products demand, particularly its need to support a burgeoning civil aviation sector,' DMCC executive chairman Ahmed Bin Sulayem says.