UAE's Emarat in talks to lease Fujairah storage

UAE’s Emarat in talks to lease Fujairah storage

UAE fuel retailer Emarat is in talks with potential investors to lease out its storage tanks in the port of Fujairah, a source familiar with the matter said on Tuesday.

September 20, 2011 3:08 by Reuters

“They are collecting bids, applications from companies,” the source, who asked not to be identified because he is not authorised to speak to the media said.

“There is good interest from companies,” he said, while declining to name them.

In July, Emarat said it had completed its oil storage expansion project to boost capacity to 260,000 cubic meters from 50,000 cubic meters previously.

It is not clear if Emarat plans to lease all of its 13 tanks, which could store gas oil, gasoline and jet fuel.

“The process (of leasing the tanks) could be completed by the end of the year,” the source said.

Fujairah is one of the world’s top bunkering destinations, after Singapore and Rotterdam, and has emerged as an oil storage hub in a region where oil traders are looking to capture storage space to meet demand from Asia.

Another industry source said PetroChina was previously among the potential tenants for Emarat tanks but that the specifications did not suit the Chinese oil giant’s needs. (Reporting by Humeyra Pamuk, editing by Daniel Fineren)