Brooge Petroleum is planning a major expansion of its crude storage in Fujairah, which will increase capacity six-fold, according to Bloomberg. The company decided to expand due to "huge" demand at the port.
“The company’s philosophy has always been to get contracts in place first and then get the land and then start construction,” CEO Nicolaas Paardenkooper told Bloomberg. “We’ve never built on speculation.”
He expects to sign contracts by the end of Q1 2020 to lease the additional capacity, when it will also complete a study for the project. He said that contstruction work could start by the end of 2020.
The expansion could add up to 3.5mn cubic metres, equivalent to 22mn barrels, of storage at Fujairah, compared to its current storage capacity of 601,600 cubic metres (3.8mn barrels).