BPGIC inks land lease agreement with FOIZ to expand storage and refinery services in Fujairah

With the completion of the Phase III expansion, BPGIC would become the largest oil storage and service provider in Fujairah

BPGIC’s initial studies indicate that the land could house up to approximately 3.5 million cubic metres of storage tanks and, potentially, a refinery with a capacity of up to 180,000bpd.
BPGIC’s initial studies indicate that the land could house up to approximately 3.5 million cubic metres of storage tanks and, potentially, a refinery with a capacity of up to 180,000bpd.

Brooge Holdings and its wholly-owned subsidiary Brooge Petroleum and Gas Investment Company (BPGIC), a Fujairah Free Zone entity in the oil storage and services business, announced that BPGIC signed a land lease agreement with Fujairah Oil Industrial Zone (FOIZ) for a strategically located and prime plot of land with a total area of approximately 450,000 square metres on which BPGIC plans to develop its Phase III facility.

BPGIC expects that Phase III alone could add storage and services capacity of up to three and half times the size of BPGIC’s projected operations post-Phase II, which will be one million cubic metres. 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 award-winning 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 cubic metres of storage tanks and, potentially, a refinery with a capacity of up to 180,000bpd. BPGIC is in discussions with potential collaborators for Phase III, including several top global oil majors who expressed interest in collaborating on the Phase III facility and has a signed memorandum of understanding in place.

BPGIC believes that with the completion of the Phase III expansion as planned, it would become the largest oil storage and service provider in Fujairah. Nicolaas Paardenkooper, chief executive officer of both Brooge Holdings and BPGIC commented: “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 over 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 commence discussions with regards to the finance structure with potential financiers based on the outcome of the final studies in the near future. There can be no assurances that BPGIC will be able to obtain such financing on commercially reasonable terms.

For the latest refining and petrochemical industry related videos, subscribe to our YouTube page.

For all the latest refining and petrochemical news from the Middle East countries, follow us on Twitter and LinkedIn, like us on Facebook.

You may also like

Lux Research report: Global megatrends will transform the chemical industry over the next 20 years
Climate change, sustainability, and digital transformation will drive massive change for future chemicals companies
ADNOC invests $245mn to upgrade main oil lines and Jebel Dhanna Terminal
ADNOC Onshore awards two EPC contracts to increase the capacity of two main oil lines and upgrade crude receiving facilities at the Jebel Dhanna Terminal
Haldor Topsoe sets out to become the global leader in technologies to reduce carbon emissions
A new purpose and vision launch Topsoe’s ambition to lead the drive to reduce carbon emissions from fuels and chemicals
APICORP posts $54.8mn net profit in H1-2020
Gross operating income at $144.7mn and net income at $54.8mn despite adverse global conditions

MOST POPULAR