Sinopec Company buys stake in Fujairah storage project
Sinomart KTS Development Limited, a subsidiary of China Petroleum & Chemical Corporation (Sinopec) has bought a 50 percent interest in an Fujairah oil storage project from Singapore's Concord Energy Pte Ltd (Concord), Concord announced.
The project, Fujairah Oil Terminals FZC (FOT), will consist of a 1,155,000 cubic meter oil storage facility in the United Arab Emirates' Fujairah Free Zone, next to the Port of Fujairah.
Construction of the tank farm is scheduled to start this month and begin operations in the fourth quarter of 2014, and Concord said the project recently received $252 million in debt financing agreements from six international banks.
"We are delighted to confirm the completion of the sale of 50% of the FOT project to Sinomart" said John Stuart, CEO of Concord's Assets Group.
"Sinomart's investment is a huge endorsement of the strategic importance of our Fujairah project, and brings valuable expertise in oil storage operations."
The facility will store crude oil, bunkers, gasoline, diesel and other petroleum finished products and will offer product mixing, blending, and heating services.
The new Abu Dhabi crude oil pipeline has been drawing new oil and gas projects to Fujairah, including an expansion of storage capacity at Vitol Tank Terminals International (VTTI)'s facility there.
