(EnergyAsia, October 29 2010, Friday) — GPSChemoil said it has secured loans totalling US$90 million to help finance the phase four construction of its storage terminal in Fujairah, UAE that will make it one of the biggest in the Middle East.
Upon completion in 2012, the terminal’s capacity will be expanded from its existing 95,000 cubic meters to 675,000 cubic meters, said GPSChemoil, a joint venture company between Gulf Petrol Supplies LLC, a subsidiary of the Fujairah National Group, and Singapore-based Chemoil, one of the world’s leading suppliers of marine fuel. The project’s phase four is expected to cost US$130 million.
A consortium of banks in Abu Dhabi, Dubai and Singapore agreed to provide the multi-currency loan structured through a combination of Islamic and conventional loan tranches, with HSBC Bank Middle East Limited acting as the lead arranger.
GPSChemoil the facility will be one of the largest bunker terminals in the Middle East and will also be Chemoil’s largest storage facility worldwide, exceeding the current 482,000-cubic meter storage capacity at its flagship Helios Terminal in Singapore.
Sanjay Anand, managing director of Chemoil Asia & Global Logistics and a GPSChemoil director, said:
“The GPSChemoil terminal, which is part of our extensive global supply infrastructure, will substantially increase our strategic presence in the Middle East. It will ensure our shipping customers highly reliable supply, speedy service and competitive pricing.
“The Fujairah facility will also significantly expand our worldwide fuel terminal business, helping to provide stable recurrent income amid current market volatility.”
The terminal is part of Chemoil’s strategy to expand its global integrated marine fuel supply chain to better serve its customers.
Saif Al Salami, managing director of Fujairah National Group and a GPSChemoil director, said:
“Gulf Petrol Supplies’ ongoing investments in Fujairah, including GPSChemoil storage terminal expansion, are reflective of our confidence and commitment to the Emirate’s growth and strategic importance to the region.”
GPSChemoil is a partnership between Chemoil and Gulf Petrol Supplies LLC, a subsidiary of the Fujairah National Group. GPSChemoil was set up to jointly develop and operate the oil terminal storage at the port of Fujairah, one of the top three bunkering ports in the world.