Greece-based marine fuel logistics company Aegean Marine Petroleum Network is planning to build a 3 million barrel in-land storage facility in the United Arab Emirates (UAE).
The company is entering into a 25-year terminal lease agreement, which includes an option for an additional 25 years, with the Municipality of Fujairah.
Construction of the new facility 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.
Aegean Marine currently operates one storage facility located in the UK. The company also has an onshore storage facility currently under development in Jamaica and another in Morocco. 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 7 million barrels.
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, E. Nikolas Tavlarios, president of Aegean Marine, comments. 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.