UAE-based Brooge Energy will commission eight new tanks with a total capacity of 3.8 million bbl at its terminal near the Port of Fujairah by the end of 2020.
Construction began on the tanks, Phase II of construction work at the site, in September 2018, and Brooge expects them to be completed by the beginning of Q4 and at 100% capacity by the end of Q4. It will allow Brooge to store and blend crude oil at the site, as well as expanding the capacity for jet fuel and clean products. Once complete, the Brooge Energy site will be the second largest non-captive storage provider in Fujairah.
Phase I, which consists of 14 tanks with a capacity of 2.5 million bbl, began operations in January 2018. A third phase, with capacity for an additional 22 million bbl of oil, is scheduled for operations by the end of 2022. The company is also building a 25,000 BPD refinery at the site to produce low sulphur fuel oil, which is expected to come onstream in Q3 2021.
Brooge made the announcement at its 2019 financial results conference, where it also revealed record revenues of $44 million and a gross profit of $34 million.
Brooge CEO Nicolaas L. Paardenkooper revealed at the conference that the Phase I terminal operated at full capacity for the whole of 2019, while the same customer, an international energy trading company, has signed a multi-year contract for 100% of the Phase II facility.
‘The disruption to oil markets caused by COVID-19 showed the high strategic value of having well-located storage assets, and we are pleased that our Phase I facilities remain fully operational at this time, having experienced limited impact from the COVID-19 pandemic. We continue to advance our strategy to build out the largest oil storage facility in the Port of Fujairah and have made meaningful progress toward this goal in recent weeks, including signing an agreement to commence a front end engineering design (FEED) study and advancing negotiations with a potential customer for the Phase III capacity. Once Phase III is complete, which is anticipated to be in late 2022, we will have storage capacity for approximately 4.5 million m3,’ said Paardenkooper at the conference.