Page 4 - DMEA Week 37 2021

DMEA COMMENTARY DMEA

Brooge receives cargo as

Fujairah expansion progresses

Brooge Energy has launched the expanded phase of its storage
terminal in the UAE with plans to expand capacity and build refineries.

MIDDLE EAST US-LISTED Brooge Energy Ltd has received and testing, all while navigating a challenging
the first crude cargo at its storage terminal in macro-environment which impacted on our
Fujairah in the eastern UAE swiftly following the supply chain and construction timelines.”
WHAT: completion of the facility’s second phase. He added: “Oil storage in the port of Fujairah
The company has already The company still has major expansion plans in the Middle East is in high demand, which has
contracted all of the as it seeks to more than triple its storage capac- enabled us to fully contract the entire capacity.”
additional capacity from ity from the current 6.3mn barrels alongside the With that high demand in mind, work has
Phase II and begun work development of a 25,000-barrel per day (bpd) been ongoing since last year to prepare for the
on the next stage. modular refinery and a 180,000-bpd ‘conven- Phase III expansion project covering a further
tional’ refining unit, all of which will be covered 15.7mn barrels of storage and the two refiner-
WHY: by the project’s third phase. ies. A front-end engineering and design (FEED)
Fujairah has already and preconstruction work have been com-
become the world’s third Storage pleted. Meanwhile, EY carried out a feasibility
largest bunkering hub In a company filing, Brooge said that it has fully study which Brooge says “supports the financial
and there are ambitious contracted the additional storage capacity from viability of the … plan, highlighting upcoming
plans in place for Phase II. It did not say which companies had infrastructure investments in the region as a key
significant expansion. leased storage capacity but noted that the stor- driver of sustainable storage demand and rising
age capacity would be utilised under multi-year domestic and export demand for refined prod-
WHAT NEXT: contracts. ucts as a key driver of refinery demand”.
Brooge is kicking off work Of the completion of Phase II, CEO of Brooge
to develop first a modular and local subsidiary Brooge Petroleum & Gas Refineries
refinery then a 180,000- Investment Co. (BPGIC) Nicolaas Paarden- In early July, Brooge announced that it had
bpd unit that will more kooper, said: “This is a major milestone for agreed to sublease land to Blue Ocean Energy
than double the emirate’s Brooge Energy and follows months of careful FZE for the construction of the 25,000 bpd mod-
throughput capacity. planning, construction, contract negotiations ular refinery. It said that the unit would produce

P4 www. NEWSBASE .com Week 37 16•September•2021