Page 15 - DMEA Week 03 2023

DMEA NEWS IN BRIEF DMEA

including transportation and power as bunker fuel, in the world’s third-largest bought stakes in Matola Terminal de
generation and in industries, such as steel, bunkering hub located in the United Arab Armazenamento de Petróleos SA, an oil
cement and fertilizers. Emirates’ city of Fujairah, rivalling energy storage terminal operator in Mozambique,
The project will benefit from the UAE’s trader Vitol. and South African trader New Age Energy,
position as a major producer and reserves Montfort’s purchase is valued at around according to its website.
holder of natural gas and leader in CCUS. The $80 million, the sources said, and comes as REUTERS
CCUS process uses advanced technology to embattled German utility Uniper is divesting
prevent CO2 from entering the atmosphere assets to fulfil conditions set out by the Kenyan company to build
after it is expended in industrial processes. European Commission in a 34.5 billion
ADNOC operates Al Reyadah, the region’s euro ($37.36 billion) plan to recapitalise the LPG storage unit near
first industrial-scale CCUS facility, with an company.
800,000 tons per year of CO2 capture capacity. Under the deal, Montfort would take Mombasa
TA’ZIZ continues to advance at pace with over Uniper Energy DMCC’s facility, which
site preparation underway and strategic consists of two crude processing units Kenya-based gas and petroleum company
agreements signed for the development of a specifically focused on provided low-sulphur, Fossil Supplies Ltd plans to construct a new
world-scale ethylene dichloride (EDC), chlor- environmentally compliant bunker fuel that liquefied petroleum gas (LPG) terminal near
alkali, polyvinyl chloride (PVC) production started commercial production in 2017. the port of Mombasa at a cost of KES1.97bn
facility with Reliance Industries and Shaheen, That would give Montfort control of ($16mn).
and with Proman for a world-scale methanol Uniper’s estimated market share of more Fossil Supplies, which owns 94 petrol
facility. The total investment in the first than 40% in Fujairah, where nearly 8 million service stations in Kenya and neighbouring
phase of TA’ZIZ will be in excess of $5 billion tonnes, 139,000 barrels per day, of marine fuel Uganda through its sister company Petrocity
(AED18 billion), with most of the chemicals are sold annually, the sources said. Group, distributes its LPG through its own
produced to be created in the UAE for the first The companies are finalising the deal, some brand, Cylinders PETGAS.
time. All agreements are subject to regulatory of the sources said, although one source said The planned Mombasa terminal would be
approvals. the deal has been closed. Other companies used for loading and storing LPG, shortages
ADNOC that were also in the running were Vitol and of which periodically hit Kenya. It will be built
BB Energy, the sources said. on 3.5 acres (1.42 hectares) leased from the
Uniper and Montfort declined to Kenya Railways Corporation, according to
TERMINALS & SHIPPING comment. The Standard.
The Fujairah plant processes mainly Currently in Kenya, the LPG market
Montfort wins bid for Uniper African sweet, or low-sulphur, crude oil, is dominated by big brands such as Rubis
producing about 5 million tonnes per year of
Energy (K-Gas), Shell, and Africa Gas and
facility at Fujairah very low-sulphur fuel oil (VLSFO), according Oil’s (AGOL) Proto gas.
to Uniper and Refinitiv data.
The LPG facility will enable oil marketers’
Montfort has emerged as the top bidder for Montfort has a bunker supplier licence in access to “an alternative for importation
Uniper Energy’s oil refinery in the UAE that Fujairah under the entity of Montfort Trading and supply of liquefied petroleum gas at a
produces low-sulphur fuel oil for the shipping FZE. The company trades liquid and bulk competitive price to the end-users,†the firm
industry, multiple sources familiar with the commodities and also invests in assets and said in a regulatory filing, seeking approval for
matter said this week. infrastructure, according to its website. the project.
The deal could make Montfort one of the Montfort has acquired oil marketing BNE
top two suppliers of ship fuel, also known company Kencor Petroleum Ltd in Kenya,

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