A new US$100 million oil storage terminal in Fujairah will start operations this week as the eastern emirate's strategic location attracts increased investment.
Dubai-based Emirates National Oil Company's Horizon Terminals Limited (HTL) will open the 240,000 cubic metres facility to store products such as fuel oil, naphtha, gasoline, gas oil, jet fuel and liquefied petroleum gas.
"The new oil terminal in Fujairah is of strategic importance to the energy sector of the region and in further establishing the emirate as a key regional hub in the oil and gas trade," said Saeed Khoory, Enoc's chief executive.
Fujairah's location on the Gulf of Oman south of the Strait of Hormuz has attracted a slew of investment into its port storage facilities. A 380-kilometre pipeline connecting oil production at Habshan allows Gulf crude exports to bypass the waterway Iran threatened to close last year in retaliation against sanctions.
The new facility will be linked to Port of Fujairah's oil tanker berths, allowing for the swift import and export of liquid oil products.
The terminal will be HTL's second in Fujairah after Vopak Horizon Fujairah, and 11th overall. HTL also has terminals in Singapore, South Korea, Djibouti and Morocco. It is building another facility in Jebel Ali, HTL's seventh in the UAE, with a capacity of 140,000 cubic metres.
Located on the west side of the Fujairah-Khorfakhan Highway, the new Fujairah Oil Terminal was built by Singapore-based contractor Audex.