Fujairah on the list of global oil storage hubs

01-03-2019 Media in\ Fujairah
The Fujairah Chamber of Commerce and Industry (FCCI) is the world’s largest oil storage hub along with Houston, Singapore, Amsterdam, Rotterdam and Antwerp, benefiting from its location outside the Strait of Hormuz, one of the busiest and most sensitive waterways in the world.
Experts estimate that the emirate is on its way to the world’s first place in light of the projects, expansions and future plans it is implementing.
Storage facilities and the accumulated experience of its employees play an important role in enhancing the Emirate’s position in the highly competitive global oil services market. The storage capacity of Fujairah’s storage facilities is about 10 million metric tons.
By 2020, the region is expected to reach 14 million metric tons and the region has more than 260 fuel tanks. Fujairah is the world’s second largest ship refueling hub after Singapore, according to specialized international reports.
Two years ago, Fujairah Port witnessed the inauguration of the country’s first offshore pier and the world’s longest pier to load VLCC oil tankers on the Indian Ocean coastline, reinforcing the UAE as one of the most influential players in the market.
With the completion of the current development plans, the Port will be the first petroleum port in the volume of petroleum transportation and the storage of oil and its derivatives worldwide, bypassing the Singapore seaport.
The port of Fujairah, which includes 12 international companies specialized in the storage and circulation of oil and its derivatives, has become a strategic center globally in the oil and gas export sector of the state and the region and one of the most important international ports and is witnessing new developments in light of the national trend towards the integration of national port services away from competition.
The 400 km2 oil pipeline project, with a total cost of AED 4.2 billion, is one of the strategic projects of the UAE. It provides an alternative route for the export of Abu Dhabi crude oil and provides the possibility of exporting 70% of Abu Dhabi oil without relying on the Strait of Hormuz As a major export route for oil, so it plays an important role in national security.
The port of Fujairah has begun to provide cleaner marine fuel that meets stricter emission rules, which will be in place by the beginning of 2020, according to a memo on the port’s website yesterday.
“Sea fuel with a sulfur content not exceeding 0.5% is available in Fujairah as of early February 2019.” The Fujairah is one of the world’s largest refueling centers and IMO will prohibit the use of fuel containing sulfur exceeding 0.5% As of January 1, 2020 compared to 3.5% currently.
In order for shipping companies to comply with the 2020 rules, cleaner fuels should be converted, but more expensive, or investing in exhaust gas cleaning systems that would allow them to use cheaper fuels with higher sulfur content or modify ship design to rely on alternative fuels such as LNG.