According to the role of the United Arab Emirates as a major member America’s new Middle East strategy Brooke Petroleum and Gas Investment Company has started work on a 600,000 cubic meter secondary storage facility at the port of Fujairah to cope with the growing Chinese influence in the region.
Its total capacity is about 1 million cubic meters, equivalent to 6.3 million barrels of crude oil. The additional capacity is part of a plan by the United Arab Emirates – and the United States – to significantly expand Fujaarah’s oil storage capacity to 12 million cubic meters by 2024, and – according to Fujaira port development officials earlier this year – to a year or less later. At least 17 million km. By doing so, the United Arab Emirates and the United States hope to counter the threat that Iran will disrupt raw materials through the 30th oil pipeline. The recently completed Jasque Center At very high prices (from the price increase from border closure). Currently, the once-beloved Fujairah-United Arab Emirates is one of the smallest and least-known emirates: the Far East Singapore Center, alongside the European ARA (Amsterdam-Rotterdam-Antwerp), one of the world’s largest oil storage and trading centers. , And U.S. Cushing – only got real business after the 2011/12 Hormuz debate.
It began in December 2011 when Iran threatened to cut off oil exports if it had to be lifted or cut off by Iran’s economic sanctions, and included a 10-day military exercise in international waters near the Chok Point. At that time, Fujarah was located 160 miles[160 km]outside the Persian Gulf and in the Gulf of Hormuz, and it had a very strategic location to deal with such disruptions.
At the time, it still did not align itself with any pro-Iranian country that had big plans with Iran. Cooperation in the construction of Tehran The world’s largest liquefied natural gas (LNG) sector. An additional benefit of Fujarah in that 2012 analysis was that he was able to operate international oil companies within the same clear and unambiguous legal framework as in the United Arab Emirates.
Although Fujaira’s overall expansion plans will be delayed before the final major fall in global oil prices by 2020, due to lower future oil prices, hydrocarbon storage is a less attractive option, and every part of the project will be part of Fujaira’s prestigious Middle East storage center: The so-called: gradually entered the line. The 380-kilometer Abu Dhabi crude oil pipeline was launched in June 2012 from the Abu Dhabi coastal field to Fujaira, transporting 1.8 million BPDs, and the United Arab Emirates (UAE) has been able to mobilize courage in international operations. Market.
At that time, Fujarah also developed a number of remittance services in the international warehouse, including the loading and unloading of large trucks (VLCs) for heavy oil and refined products. Oil, fuel oil and pure products, storage and supply of container fuel, and cargo and in-tank cargo transfer. In a relatively short period of time, Fujaira’s port aircraft were capable of handling both small boats (3,000 tons of cargo, DWT) and large VLCCs (up to 300,000 DWT). In 2015, Vopac Horizon Fujairah announced that it was building five crude oil storage tanks with a capacity of 478,000 cubic meters at the port and planned to expand that number.
A positive background for Fujairah’s continued expansion was always expected to be the flow of trade from the Dubai Multicultural Center, with more storage capacity for merchants to be more flexible in their dealings and a more supportive financial infrastructure. By Fujaira officials. This proves to be the case and Fujarah will benefit from the growing volume of trades on the recently established ICE Futures Abu Dhabi (IFAD) in Abu Dhabi. On March 29, the number of contracts jumped from 6,344 (equivalent to 6,344,000 barrels) to 20,124 (equivalent to 20,124,000 barrels) on July 6.
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The IFAD, launched in March this year, is specifically designed for Murban futures trading. United Arab Emirates Key Geopolitical Corporation Hydrocarbon Advocate, Edinock, is one of the four crocodiles selected for its light, sweet Muraban crude oil, although it is the most vocal, and the UAE holds about half a million BDP. Oil production before the CVD-19 epidemic. According to ICE and ADNOC, Muraban’s future is the second in-line deal to be traded in the post-Dubai Oman Ratings, which is also a potential milestone in Platts benchmark Dubai and Oman raw assessments. ICA and Edinock have partnered with BP, GS Caltex, Inpex, ENEOS, PetroChina, PTT, ll, Total and Vitol to launch IFP, and ICE has announced agreements with Chevron, Trafigura and Occidental. It is shipped from the United States to Asia.
Given this strong business logic and the most favorable geographical location, Fujarah seems to continue to benefit from its strategic location outside of the most difficult Gulf of Hormuz and the rest of the Persian Gulf. Instead, Fujairah will provide an unrestricted direct port on the Gulf of Oman – but on the eastern side of Oman – which means that any oil stored there could lift any embargo on Iran’s ships. Hormuz. This option is becoming more attractive to Iran as the completion of the Guerrero-Jashk pipeline and the completion of a new round of US cooperation (nuclear deal). Fujaira’s geographical location also allows any stored oil to avoid future problems with Oman The Sultanate was defeated by the current Chinese fraud To be part of its OBOR-related influence.
By Simon Watkins for Oilprice.com
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