UAE’s Brooge Petroleum Takes First Oil at Expanded Storage Site
UAE’s Brooge Petroleum Takes First Oil at Expanded Storage Site
(Bloomberg) --
Brooge Energy Ltd. received its first oil cargo at a newly completed section of the company’s Middle East storage terminal as it expands to meet demand for ship fuel and other products amid growing regional trade.
The New York-listed company has fully contracted out the additional storage capacity, which includes tanks for storing clean petroleum products and crude oil, Brooge said in a statement. Brooge didn’t say who had leased the tanks and stated that the capacity would be used under multi year contracts.
Brooge Petroleum and Gas Investment Co. is the unit that operates the storage terminal at the port of Fujairah in the United Arab Emirates. Fujairah sits on the UAE’s Gulf of Oman coast just outside the Strait of Hormuz, a vital shipping chokepoint through which about 20% of global oil supply transits.
Fujairah is the region’s main oil trading hub and a stopping point for vessels refueling and changing crews during trips to the Persian Gulf and Red Sea.
The company has capacity to store about 6.3 million barrels of oil after the latest expansion. Brooge plans to build additional tanks and a modular refinery at the site. In July it said it had reached an agreement with Abu Dhabi-based trader Blue Ocean Energy FZC to build a 25,000 barrel-a-day refinery which Brooge will operate for five years, with the potential for three extensions of that duration.
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