Brooge Petroleum and Gas Investment Company (BPGIC) has signed a land lease agreement with Fujairah Oil Industrial Zone to more than triple storage capacity at its terminal.
The agreement is for a strategically located prime plot of land with a total area of 450,000 m2 on which the company plans to develop its Phase III facility. This will add up to three and a half times the size of BPGIC’s projected operations post-Phase II, which will be one million m3.
BPGIC intends to use the land to further increase its capacity for storage and refinery services by developing additional storage and refining capacity using the same technology, technical features and tank diversification as used in Phase I and Phase II.
BPGIC’s initial studies indicate that the land could house up to approximately 3.5 million m3 of storage tanks and, potentially, a refinery with a capacity of up to 180,000 barrels per day. BPGIC is in discussions with potential collaborating on the Phase III facility and has a signed memorandum of understanding in place.
BPIGC believes that once complete, it will become the largest oil storage and service provider in Fujairah.
Nicolaas Paardenkooper, CEO of Brooge Holdings and BPGIC, says: ‘We are thrilled to announce that we have secured a lease for this strategic and sizeable plot of land in Fujairah Oil Industry Zone, which can accommodate additional capacity of more than 3.5 times our facilities currently operating and under construction.
‘When the Phase III expansion is completed, we expect to become the largest oil storage and service provider in the increasingly important FOIZ and Port of Fujairah.’
BPGIC will require additional financing to fund the development of the Phase III facilities and plans to start discussions with regards to the financial structure with potential financiers based on the outcome of the final studies in the near future.