Page 15 - MEOG Week 11 2023

MEOG NEWS IN BRIEF MEOG

to flood the hub, while latest price caps on to grow because of new projects. SERVICES
Russian petroleum products have a mild Fujairah will be commissioning a dry bulk
impact on trade, industry executives said on export facility in Dibba, adding about 18 Heisco lands $223mn
Tuesday. million tonnes of aggregate handling capacity.
Russian oil barrels have been flowing Landed stocks at Fujairah averaged at 11.47 Kuwait oil flow line project
into popular ship-to-ship transfer hubs in million barrels (1.81 million tonnes) per week
the Middle East and Asia since last year as in 2022, climbing from 10.26 million barrels contract
Western sanctions led to the reshuffling of (1.62 million tonnes) in 2021, based on data
trade flows. from the Fujairah Oil Industry Zone. More Heavy Engineering Industries and
“We have seen a huge influx of Russian recently, storage volumes jumped sharply after Shipbuilding Company (Heisco) has
barrels coming into Fujairah ... particularly February sanctions on Russian oil products announced that it has signed a contract with
Urals (crude oil) and naphtha,” Maha and Kuwait’s Al Zour refinery ramped up Kuwait Oil Co. (KOC) for the construction
Abdelmajeed, commercial manager at VTTI exports. of flowlines and associated works on the
Fujairah Terminals, said at the Fujairah Russia has been selling crude and country’s western side. As per the KD68.5mn
Bunkering and Fuel Oil Forum (FUJCON) refined products at discounted prices after ($223mn) contract, the entire project will be
on Tuesday. The hub is expected to register international sanctions while the UAE has competed within the next five years, stated
strong and healthy demand for storage going been taking more cargoes of Russian crude oil, Heisco in its filing to the Boursa Kuwait.
forward, Abdelmajeed added. according to ship-tracking data and sources. A major engineering, procurement and
Total storage capacity at Fujairah stands Russian fuel oil has also flooded Middle construction (EPC) contracting company
at 11.1 million cubic metres so far, based on East markets since last year, with little signs of based in Kuwait, Heisco caters to a diversified
port statistics. Existing tanks are already at full abating despite latest price caps on Russian oil range of businesses.
capacity, said trade sources on the sidelines of products. These include oil and gas, petrochemicals,
the forum. “I don’t think the price cap really makes power, pressure equipment manufacturing,
Fujairah had a record year in terms of oil much of a difference... most of the Russian oil shipbuilding and repair, dredging and
cargoes in 2022, with close to 12,500 vessels has been priced below the price cap anyway,” marine construction, civil construction
calling at its offshore anchorage area, statistics Saudi Industrial Export Company’s chief and maintenance as well as other industrial
show. commercial officer Andrew Laven told the services including Heavy Industry projects.
Amid the reshuffling of trade flows, forum. The price caps on petroleum products, The revenue will be shown in annual financial
volumes at the port were up about 10% which kicked in on February 5, could instead statements from 2023 - 2027, it added.
last year, said Martijn Heijboer, business have some impact on refining margins, said TRADE ARABIA
development manager at the port of Fujairah. Laven. Meanwhile, Vitol Bahrain’s regional
“There is still some uncertainty this year as head of fuel Paul Kelly said that the price caps
the price cap (on Russian oil) just started in are there to “maintain the flow of oil” and “not
February,” said Heijboer, adding that there is to stop the flow”.
room for transit volumes and storage demand REUTERS

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