Page 12 - DMEA Week 27

DMEA TRANSPORT & STORAGE DMEA

UAE storage operator Brooge enjoys

23% hike in revenues in 2019

UAE UAE-BASED storage operator Brooge Energy market participants scrambling to find storage
earned $44mn in revenue in 2019, it reported space for unsold supplies. Fujairah’s facilities
Storage was more last week, up 23% year on year. Its gross profit for reportedly reached full capacity at the start
valuable than it has the year came in at $34mn, up 31%. of April. The port is considered a prime loca-
been in years during the The company, which operates oil and oil tion for oil storage, as it is situated just outside
pandemic. product storage capacity in the UAE’S Fujairah the Strait of Hormuz, a narrow waterway that
hub, attributed the growth to a multi-year agree- carries around 17-18mn bpd of Middle East-
ment with an offtake customer at its Phase 1 ter- ern crude to markets that Iran has repeatedly
minals. This meant that the terminal worked at threatened to block.
full capacity throughout the year. “The disruption to oil markets caused by
Commenting on the results, CEO Nicolaas COVID-19 showed the high strategic value of
Paardenkooper noted that Brooge had secured having well-located storage assets, and we are
a multi-year contract for 100% of its Phase 2 pleased that our Phase 1 facilities remain fully
storage facilities with the same customer. These operational at this time, having experienced
facilities are due to start up in the second half of limited impact from the COVID-19 pandemic,”
2020 and generate “significant” revenues, he said. Paardenkooper said.
“The launch of our Phase 2 operations will Brooge recently hired a company to carry out
also expand our storage capabilities to now a front-end engineering design (FEED) study for
include crude oil, as well as adding more capacity Phase 3 facilities. It is also in “advanced negotia-
for fuel oil and clean products,” Paardenkooper tions” with its customer for this capacity.
said. “Once Phase 3 is complete, which is antici-
Brooge aims to have eight new oil storage pated to be in late 2022, we will have storage
tanks in Fujairah up and running by the end of capacity for approximately 4.5mn cubic metres,”
the year, with a combined capacity of 3.8mn bar- the CEO said.
rels of crude and refined products. Brooge is also drawing up plans for a 25,000
The coronavirus (COVID-19) pandemic bpd low-sulphur fuel oil refinery in Fujairah. The
and the resulting slump in fuel prices left port is a major bunkering spot. ™

P12 www. NEWSBASE .com Week 27 09•July•2020